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We have often seen questions here along these lines and there are clear traps here for the unwary.

https://www.patrickcannon.net/wp-content/uploads/2020/10/Full-Decision-T...

Indeed, it was only due to HMRC's incompetence that the taxpayer got any refund at all.

To avoid these traps it may be necessary to break purchases into more than one contract (to avoid para 5 problem issues where the subsidiary dwelling relief does not apply).

Para 62 is odd as that suggests if you buy a dwelling and then immediately demolish it to build a new dwelling then you can be stuffed. The corollary could also be that if you buy a huge house but wish to live in a smaller house, so demolish half, again you can be stuffed. Or if you buy a bungalow and extened it with a large self-conatined dwelling that you live in and your parents live in the (former) bungalow then again you can be stuffed. 

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