Principal residence relief: had a dwelling become settled property?
In Veronica and Stephen Wagstaff v HMRC (TC03183 – 7 January 2014) the issue was whether a dwelling had become ‘settled property’ under a trust. If it had then under a combination of TCGA 1992 s 223 and s 225 as the dwelling was the occupier’s principal residence the gain triggered on sale of the dwelling was not taxable.
Veronica had sold her flat for £45 000 to her son Stephen in February 1996. The sale was subject to a brief agreement under which Veronica was entitled to continue living at the flat at no cost for the remainder of her life or until her remarriage subject to payment of £5 000.
The tribunal found that Stephen had only subsequently re-sold the flat with the agreement of his mother and that he had therefore not become...
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Principal residence relief: had a dwelling become settled property?
In Veronica and Stephen Wagstaff v HMRC (TC03183 – 7 January 2014) the issue was whether a dwelling had become ‘settled property’ under a trust. If it had then under a combination of TCGA 1992 s 223 and s 225 as the dwelling was the occupier’s principal residence the gain triggered on sale of the dwelling was not taxable.
Veronica had sold her flat for £45 000 to her son Stephen in February 1996. The sale was subject to a brief agreement under which Veronica was entitled to continue living at the flat at no cost for the remainder of her life or until her remarriage subject to payment of £5 000.
The tribunal found that Stephen had only subsequently re-sold the flat with the agreement of his mother and that he had therefore not become...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")