Property purchase and sale by individual: whether trading
In A Headley v HMRC (TC02779 – 18 July) an individual (H) purchased a house in September 2001 let it to tenants and sold it in December 2005. HMRC issued an assessment charging CGT on the gain. H appealed contending that he should be treated as carrying on a trade of dealing in property. The FTT rejected this contention and dismissed his appeal. Judge Walters found that H’s acquisition of the house ‘was motivated to a significant extent by the prospect of the rental income to be derived from it (an investment motive)’ and that he had continued to hold the house as an investment until he sold it.
Property purchase and sale by individual: whether trading
In A Headley v HMRC (TC02779 – 18 July) an individual (H) purchased a house in September 2001 let it to tenants and sold it in December 2005. HMRC issued an assessment charging CGT on the gain. H appealed contending that he should be treated as carrying on a trade of dealing in property. The FTT rejected this contention and dismissed his appeal. Judge Walters found that H’s acquisition of the house ‘was motivated to a significant extent by the prospect of the rental income to be derived from it (an investment motive)’ and that he had continued to hold the house as an investment until he sold it.
