First-tier Tribunal had made errors in law

The taxpayer had bought and sold four properties over five years. HMRC issued discovery assessments on the basis that this was a trading activity; if it was not trading the transactions were capital in nature and subject to capital gains tax.

The taxpayer appealed saying he intended to live in each property as his main residence. He was unable to move into some of the properties because of his father’s health. He said he was his parent’s full-time carer and had to stay in his father’s home and that this was therefore job-related accommodation.

HMRC accepted that he lived in one of the properties but other than providing computations of his expenditure the taxpayer produced no evidence – such as changing the addresses on his driving licence bank account or insurance - to reflect his residence. In any event HMRC agreed to allow £30 000.

The First-tier...