Evidence did not support additional costs

The taxpayer’s brother bought a flat some time before October 1999. She acquired an interest in it from her brother in October 1999 in exchange for a transfer to him of £90 000. She increased her ownership share in the flat in 2003. The flat was let to tenants until 2013 from which time the taxpayer lived in it until it was sold in 2015.

The taxpayer in her evidence asserted that the respective interests in the flat in 1999 should have been determined by reference to the available un-mortgaged element of the value of the flat at the time rather than by reference to the overall value of the flat. She further appeared to state she made another equity purchase in 2001 although was unable to provide any evidence of this.

She submitted her 2015-16 tax return showing a capital gain based on half the net proceeds...