The green, green grass of home—The FTT unravel a decades-old HMRC misinterpretation of PPR relief rules (Re Gerald Lee and Sarah Lee)

Article summary

Private Client analysis: This First-tier Tribunal case concerned the meaning of the phrase ‘the period of ownership’ in the context of relief from the capital gains tax (CGT) upon the disposal of a principal private residence (PPR). HMRC issued assessments in respect of the sale of a PPR due to a lapse of time between acquisition of the land upon which the property disposed of was later built and the occupation of that property. The tribunal held that the period of ownership of the land prior to occupation of the finished building should not be taken into account for the purposes of restricting the quantum of the PPR relief available. Agents with clients who have been taxed in these circumstances, principally self-builders may be interested in this decision. Written by Nathan Ross-Sercombe, head of Tax Investigations at Haines Watts (City) LLP, who were instructed by the appellants.