Mr and Mrs Carrasco v HMRC

Cathya Djanogly

In Mr and Mrs Carrasco v HMRC [2016] UKFTT 731(28 October 2016) the FTT set aside penalties imposed for careless inaccuracies in their returns (FA 2007 Sch 24 para 18).

Mr and Mrs Carrasco had exchanged a contract for the sale of their property before moving into it so HMRC had rejected their claim for principal private residence relief under TCGA 1992 s 28.

The FTT found that the errors made in the Carrascos’ returns were made carelessly within the meaning of FA 2007 Sch 24 para 18(1). However the FTT also accepted evidence that the Carrascos had relied on the advice of their professional accountant to the effect that provided that they resided at the property for some time prior to the sale a three year CGT exemption would apply. The FTT added that the exemption provisions were ‘sufficiently technical and obscure as to...

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