HMRC has updated its Private residence relief helpsheet following the Upper Tribunal decision in HMRC v G Lee and another [2023] UKUT 242 (TCC).
The Upper Tribunal confirmed that the ‘period of ownership’ for private residence relief purposes applies to the period of ownership of the dwelling house and not the underlying land. It did not follow the decision in the previous Special Commissioner’s case of Henke v HMRC [2006] STC (SCD) 561.
To reflect this, HMRC has updated the helpsheet which now states: ‘If you acquire land on which to build a house, your period of ownership begins at the time the dwelling-house comes into force’. It also highlights that the 24-month ‘delay in taking up residence’ period which is treated as deemed occupation (TCGA 1992 s 223ZA) also applies where land has been purchased to build a house on.
For discussion of the position following HMRC v Lee, see ‘Making a plot a home’ by David Whiscombe, Tax Journal, 16 November 2023.
HMRC has updated its Private residence relief helpsheet following the Upper Tribunal decision in HMRC v G Lee and another [2023] UKUT 242 (TCC).
The Upper Tribunal confirmed that the ‘period of ownership’ for private residence relief purposes applies to the period of ownership of the dwelling house and not the underlying land. It did not follow the decision in the previous Special Commissioner’s case of Henke v HMRC [2006] STC (SCD) 561.
To reflect this, HMRC has updated the helpsheet which now states: ‘If you acquire land on which to build a house, your period of ownership begins at the time the dwelling-house comes into force’. It also highlights that the 24-month ‘delay in taking up residence’ period which is treated as deemed occupation (TCGA 1992 s 223ZA) also applies where land has been purchased to build a house on.
For discussion of the position following HMRC v Lee, see ‘Making a plot a home’ by David Whiscombe, Tax Journal, 16 November 2023.
