inTAX secures £1m win for client in property CGT appeal case

Posted on 23 Nov 2023, by Jeremy Johnson

inTAX secures £1m win for client in property CGT appeal case

Securing a win for a client is gratifying. Securing a £1m win for a client is even better.

In this property disposal and Capital Gains Tax related Tribunal case, HMRC had argued that our client’s property transactions were trading, or in the alternative, it was determined they did not qualify for Principal Private Residence (PPR). However, our client had provided a compelling and consistent explanation for the transactions throughout the enquiry which spanned an epic seven years.

HMRC’s discovery assessments related to a moderate amount of rental income and the more significant closure notices related to Capital Gains Tax (CGT) HMRC claimed was due on the sale of three London based properties our client sold between 2010 and 2013, all with values of over £1m. Related penalties were also being imposed by HMRC for what was claimed to be our client’s ‘deliberate’ inaccuracies.

Over the years we had meetings, provided reports, analysis, explanations and evidence, argued in correspondence, provided letters from witnesses, and attended ADR, yet HMRC would not accept anything put to it. It is a shame that this matter had to go to Tribunal.

Despite dozens of witnesses who corroborated our client’s account, plus other evidence gathered, the HMRC Inspector simply did not believe our client. The judgment refers to this intransigence – see for example para 174.

All of HMRC’s assessments in relation to disposals of property were dismissed, saving £1m for our client, an excellent outcome. Most of HMRC’s assessments in relation to rental income were also dismissed.

This success is a huge testament to the hard work of our colleague and Founder of inTAX Jacqui Fleming who has fought for this client tirelessly for more than seven years, and also to our colleague Tax Manager Liam Chalmers who, in the run up to the hearing, collated mountains of documentation and evidence, prepared a detailed financial analysis at the Tribunal’s request and dealt calmly with all of the various last minute tasks that often occur in the run up to a hearing.

Big thanks must go to Michael Avient at Temple Tax Chambers for his hard work and excellent advocacy. He is always a pleasure to work with.

HMRC can of course seek permission to appeal, but we sincerely hope that they will now see fit to leave this case, and our client, alone.

The inTAX team is always committed to fighting our clients’ corners and was delighted with this positive outcome.

Get In Touch

You can get in touch with our friendly and experienced team on: 0203 675 8122 or email, or call him on 07739 093 976.