No evidence to show a degree of permanence for only or main residence relief

HMRC issued discovery assessments to the taxpayer on the basis that he had bought and sold four properties over five years. It considered this was a trading activity; if 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 full-time carer and had to stay in his father’s home – calling this was job-related accommodation.

HMRC said each property required refurbishment and were left empty while work was undertaken. It considered this to be ‘the method of operation of a property developer with a view to realisation of profits’. It agreed he lived in one of the properties but there was no evidence – such as changing the addresses on his...