CGT tribunal: appeal won on ‘compelling family reasons’

A man who bought and sold two properties after a stressful split with his wife has won an appeal to be given tax relief on the properties, reports Nick Huber.

The case of Mr AJ Clarke v HMRC (TC 01461), centred on two properties which Mr Clarke bought and sold after leaving his wife – who, the tribunal heard, was­ “having an affair and was under the care of a psychologist”.

Mr Clarke, who is now divorced from Mrs Clarke, left his matrimonial home, Oaks Farm, and in July 2002, bought and moved in to a property, 60 Nayland Road, funded by a business loan. 

Mr Clarke obtained planning permission to build a detached house in the garden of his new home. He sold 60 Nayland Road and moved into his mother’s home while he built the new property at 58a Nayland Road. Mr Clarke said that he started living at 58a Nayland Road in July 2003.

In July 2005 his wife attempted to commit suicide, the tribunal heard, and Mr Clarke felt that “he had no option but to move back to the marital home to protect his children”. He sold the 58a property in November 2005.

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