In MB Blum v HMRC (Upper Tribunal – 24 July) an individual (B) purchased a three-storey house in Harrow in 1970. He converted it into offices and used it as such for many years although it was subsequently reconverted into flats. He sold the house for £482k in 2006. In his 2006/07 self-assessment he computed the gain on the basis that at 31 March 1982 the value of the property had been £200k. HMRC issued an amendment reducing the value to £100k. B appealed. The Upper Tribunal reviewed the evidence in detail and allowed the appeal in part holding that at 31 March 1982 the rental value of the property had been £11k pa and that this should be multiplied by 12.5 giving a value at that date of £137.5k.
Why it matters: The Upper Tribunal held that...
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