Private residence relief: using case law to support claims

    Claims for private residence relief can become complex. Tribunal cases involving disputed claims are becoming more common. How can you use two recent cases to support a client’s claim for relief?

    Capital gains tax - General principles - 45000

    Broadly, capital gains tax applies to all entities making an asset disposal except those within the scope of corporation tax. Whilst the basic principles involved in calculating chargeable gains...

    Capital gains tax - General principles - When will there be a chargeable gain? - 45100

    A chargeable gain will arise on a disposal of a capital asset by a chargeable person if the disposal proceeds exceed the allowable expenditure. Where the disposal proceeds are less than the allowable expenditure,...

    Capital gains tax - Computation - 46000

    In order to calculate the amount of capital gains tax payable, a computation is required for each transaction, before considering the utilisation of: - any losses; - reliefs; and - the annual exemption...

    Capital gains tax - Computation - Disposal proceeds - 46065

    Disposal proceeds will normally either be the actual consideration received or the open market value of an asset. In either case, the disposal proceeds may be reduced by incidental costs of disposal. For...

    Capital gains tax - Computation - Allowable expenditure - 46200

    Allowable expenditure is broadly the total cost incurred by the vendor on the acquisition and disposal of the asset.

    Capital gains tax - Capital gains tax losses - 47000

    Capital losses can be relieved in a variety of ways depending on the circumstances of the disposal and the taxpayer.

    Capital gains tax - Capital gains tax losses - General reliefs - 47270

    A number of loss reliefs are available to taxpayers, although the default treatment in most cases is to reduce current year gains and then carry forward any excess unrelieved loss.

    Capital gains tax - Capital gains tax losses - Losses on trading company shares - 47500

    An individual who sustains a loss on the disposal of certain shares which were acquired by subscription, (whether as a sole subscriber, joint owner, or nominee) may set the loss against general income...

    Capital gains tax - Specific types of disposal - Scope - 48000

    The term disposal is not defined by the legislation, and therefore retains its everyday meaning. The most common form of disposal is a change in the ownership of an asset as a result of sale, exchange,...