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Private residence relief

Gillian Banks of PwC considers the First-tier Tribunal case of Higgins v HMRC (2017), which dealt with how to determine the period of occupation for private residence relief purposes

Taxline 3The First-tier Tribunal (FTT) case of Higgins v HMRC (2017) TC05724 looked at how to determine the period of occupation for private residence relief (PRR) purposes. It was decided in favour of the taxpayer and, at the time of writing, HMRC has not lodged an appeal.

In 2004 Mr Higgins paid a reservation deposit to a developer for an apartment, then entered into a contract to lease the apartment in October 2006, at which time it had yet to be built. Work did not start on the area of the building that was to become his apartment until November 2009, and Mr Higgins finally completed the purchase of the lease in January 2010 and moved in.