Gardens sold after the disposal of the residence will not qualify for relief. Varty v Lyons 1976 STC 508
A caravan with all the normal services was a principal private residence in Makins v Elson 1977 STC 46. However, in Moore v Thompson 1986 STC 170 a caravan was not a dwelling capable of being regarded as a principal private residence.
In Batey v Wakefield 1981 STC 326 a caretaker bungalow formed part of the main residence. The fact that the bungalow was physically separate from the main house was irrelevant. Similarly in Williams v Merrylees 1987 STC 445 a caretaker lodge was regarded as part of the taxpayer’s dwelling house for the purpose of the relief. However in Lewis v Lady Rood 1992 STC 171 it was held that a cottage occupied by a gardener did not form part of the main residence. Also, a bungalow built on the estate, but situated a considerable distance from the main house, did not qualify for the relief in Markey v Saunders 1987 STC 256.
In Goodwin v Curtis 1998 STC 475 a residence used for temporary occupation, where it never had been the taxpayer’s intention to occupy the property as his permanent residence, did not qualify for the relief.
Appeal against denial of principal private residence relief from CGT, and assessments to income tax in relation to dealing in land. 17TACD2018
