Second property did not replace a main residence

In July 2018 the taxpayer who invested in several properties with his father bought a property (SR) which needed renovation. At the end of August 2018 he moved staying for ten days. However he wanted to live in a different area and in mid August paid a reservation fee for a new build property (LC). He sold SR to his parents in October and completed on the LC property at the end of the same month. He was in the meantime living at his parents’ house.

He submitted a stamp duty land tax return which did not include any charge to the higher rate of tax on the basis that he was treating LC as a replacement of his previous property (SR) and that had been his only or main residence. After opening an enquiry HMRC decided the higher rate was due....