Two cases on Capital Gains Tax Private Residence Relief (PRR): one where the timely use of a main residence election would have saved the day, and the other where a property did not qualify as a "residence".

In Alison Clarke V HMRC [2014] TC04062 a claim for PRR failed due to lack of documentary evidence

  • The taxpayer had failed to nominate which of several houses was her main private residence
  • She unable to prove that she had made either of two properties that she was renovating her main residence.

Key factors in evidence: no change of address to either property, no insurance or use of utilities in the properties.

In Lindsay Meikle v HMRC [2014] TC04054 a property was not fit for human habitation; according to the sales particulars. HMRC argued as such it was not possible to claim that it was a residence.

Whilst noting that the taxpayer had failed to claim “principal private residence relief” (sic), the taxpayer did not live in the property and so failed to establish any quality of occupation.

For a further planning point and discussion on making successful main residence elections and factors that determine "what is a residence" see our detailed guide CGT Main Private Residence relief for examples, tips and planning points