Whyte v Revenue & Customs (INCOME TAX AND CAPITAL GAINS TAX - sale of serviced building plots in grounds of Grade I listed building - sale proceeds used for restoration of listed building) [2021] UKFTT 270 (TC) (26 July 2021)

Whyte v Revenue & Customs (INCOME TAX AND CAPITAL GAINS TAX - sale of serviced building plots in grounds of Grade I listed building - sale proceeds used for restoration of listed building) [2021] UKFTT 270 (TC) (26 July 2021)

The Tribunal determined that the sales of the plots were not trading transactions but disposals for CGT purposes. However, most of the plots did not qualify for private residence relief as they fell outside the permitted area. The conservation deficit was not deductible in computing the profit or gain for tax purposes.

Citation
[2021] UKFTT 270 (TC)
Parties
Appellant: Heather Whyte; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
26 July 2021
Procedural Posture
Tax Appeal / First Tier Tribunal Decision
Outcome
Appeal dismissed in part; HMRC closure notices upheld with variations.
Legal Topics
Income Tax, Capital Gains Tax, Private Residence Relief, Enabling Development, Conservation Deficit
Tax Law Income Tax Capital Gains Tax Private Residence Relief Enabling Development Conservation Deficit

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 9 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Heather Whyte

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether the sale of serviced building plots constituted trading income or capital gains
  2. 2 Whether private residence relief applies to the plots sold
  3. 3 Whether the conservation deficit is deductible in computing profit or gain

Ratio Decidendi

The Tribunal determined that the sales of the plots were not trading transactions but disposals for CGT purposes. However, most of the plots did not qualify for private residence relief as they fell outside the permitted area. The conservation deficit was not deductible in computing the profit or gain for tax purposes.

Court Disposition

Appeal dismissed in part; HMRC closure notices upheld with variations.

Orders

  • Mrs Whyte liable for tax on disposals as chargeable gains; private residence relief not available for most plots; conservation deficit not deductible.