This was a case where the appellant had contested HMRC’s decision to charge Capital Gains Tax. The Appellant disagreed with the decision saying that they qualified for principal private residence relief. The Appellant had bought the house, whilst previously renting and had intended to refurbish the property and then move in with his family. However, another buyer came along and offered a price, more than the Appellant had paid for the house. HMRC viewed this as a Capital Gain, but the Appellant was able to show that he actually moved into the house, albeit briefly, and that his original intention in buying was as a family home.

This case highlights that if you can show your intention and exactly what happened then HMRC will have to accept the PPR relief will be applicable.