In Shareen Booth v HMRC [2018] TC6904 the FTT agreed on a 20% tax penalty for the careless failure to report a capital gain on the disposal of her renovated property. 

  • Ms Booth bought a one bedroom flat and renovated it.
  • She failed to declare the disposal on her self assessment tax return.
  • She claimed that she intended to reside in the property with her four year old son and that they had both lived there during the works.
  • She also had a permanent home another address.
  • HMRC issued an assessment for tax and calculated penalties for failure to Notify chargeability at 20% of lost revenue the basis that the taxpayer's failure to report the gain amounted to carelessness.
  • The taxpayer appealed to the First Tier Tribunal.

The taxpayer claimed that CGT Private Residence Relief (PRR) applied and she had intended in living at the property however she discovered that it was on a busy road and unsuitable for her son.

The FTT found that the taxpayer's evidence as to her occupation of the property was that she paid council tax for the property for just over a month before selling it. 

Like HMRC the FTT was unconvinced that the taxpayer had ever made the property her residence. 

The 20% penalty and assessment were upheld.


Another case where a taxpayer failed to establish that there was sufficient quality of occupation of a property for it to qualify as a residence.

Useful guides

Private Residence Relief
Provides a useful checklist for 'quality of occupation, trackes caselaw in this area, explains the rules and different elements of the UK's most valuable tax relief.

How to tax profits and gains on the disposal of UK property
An extremely useful and practical guide, especially for non-UK resident property owners with a timeline and table to show the different way property is taxed.

CGT Rates & Allowances
Current rates and allowances

External links

Shareen Booth v HMRC [2018] TC6904