In S Bailey v HMRC [2017] UKFTT 658 (31 August 2017) the FTT granted principal private residence relief (TCGA 1992 s 122) even though the taxpayer had only occupied the property for two periods of less than six months.
Mr Bailey was divorced and his children lived with him. He had acquired a property in Richmond through his company with a three months bridging loan and moved into the property with his children. His plan was to obtain a personal mortgage buy the property from the company and remain in the property. However the 2008 crash made it impossible to obtain a normal mortgage and he was only able to secure a ‘buy-to-let’ mortgage which meant that he had to leave the property. Mr Bailey did move into the house two years later but decided to sell it due to his mental state.
The...
