Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
HMRC have recently lost yet another important legal battle, this time over CGT due on a property refurb deal.
Mr & Mrs Munford purchased the property in Halsey Street, London SW3 for million in 2004 for £1,050,000. From 19th to 26th December 2005 they elected the property as their main home between and sold it after refurbishing it in March 2006 for £2,550,000.
Despite making £730,000 on a refurb deal the couple hadn’t paid a penny of tax as a result of claiming the property had been their principal private residence.
HMRC’s argument was that only one week in residence was not enough to claim the property was indeed the couples home, hence the PPR relief claimed should not apply and that £190,000 of capital gains tax was due.
However, a tax tribunal failed to support HMRC and dismissed its case, pointing to a passage from the HMRC Capital Gains Manual CG64510 which clearly explains how private residence relief can be maximised by varying notices given under section 222(5) Taxation of Chargeable Gains Act 1992.
To read the full ruling CLICK HERE
Landlord Tax Planning Consultancy is the core business activity of Property118 Limited.
There are a number of restructuring options you may wish to consider. The presentation below provides a useful overview of various scenario’s and solutions to improve the tax position.
We offer fixed fee tax planning consultations with a guarantee of total satisfaction or your money back.Show Form To Book A Tax Planning Consultation
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More