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Principal private residence relief (Higgins v Revenue and Customs Commissioners)

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Published on: 26 November 2019

Published by a LexisNexis Private Client expert

Table of contents

What are the practical implications of this case?
What was the background?
What did the court decide?
Case details

Article summary

Private client analysis: The Court of Appeal has upheld Desmond Higgins’ claim for principal private residence (PPR) relief on a property he purchased off-plan and was unable to occupy for over two years ([2019] EWCA Civ 1860, [2019] All ER (D) 25 (Nov)). This overturns the previous decision of the Upper (tax) Tribunal (UT) in favour of HMRC. The court considered and confirmed the ‘period of ownership’ for the purposes of the capital gains tax (CGT) relief ran from the date of completion of the purchase until completion of the sale. With the family home usually being the main and most valuable asset for many people, this case clarifies the application of this valuable relief. Chloe Fitzgerald, associate at Brodies, considers the judgment and its practical implications.

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