In this case Mr Moore moved into a property that had previously been let out following his separation from his wife.  Several months later he purchased a property with his new partner and sold the property he had been living in since the separation.

HMRC denied CGT Principal Private Residence (PPR) relief.  PPR relief applies where a person has at any time lived in the property as their sole/main residence. The gain attributable to the last 36 months of ownership will automatically be exempt from CGT.  From April 2014, this will be reduced to 18 months.

The question was whether his occupation of the property he had sold had the necessary degree of permanence, continuity or expectation of continuity.  The tax tribunal held that it did not.

In making their decision the tribunal made particular reference to the lack of evidence, other than council tax bills, regarding the taxpayer’s occupation. Other correspondence went to both his former home and the home of his new partner.  Whilst the tribunal accepted that he had lived in the property, they felt that the lack of evidence suggested that he did not intend to live in the property permanently.

The full judgement can be found here.