Morgan v HMRC [2013] UKFTT 181 (TC)

Facts

• The case concerned whether Mr. Morgan’s property qualified as his main home for the purposes of Capital Gains Tax (CGT).
• The First-tier Tribunal reviewed the practical and factual circumstances of Mr. Morgan’s use of the property.
• Factors examined included the duration and frequency of stays at the property, utility usage, presence of furniture, access to essential services, and proximity to family and work.
• Documentary evidence, such as utility bills, council tax records, bank statements, and mail addressed to the property, was considered to support the claim of main home status.
• The tribunal referenced established HMRC guidance and prior legal decisions, such as Goodwin v Curtis, to inform its findings.

Issues

1. Whether Mr. Morgan’s property qualified as his main home for the purposes of Capital Gains Tax.
2. What factual indicators and evidence are determinative in establishing a taxpayer’s main home for Principal Private Residence (PRR) relief.
3. The role of stated intention versus documented evidence in deciding main home status.

Decision

• The tribunal concluded that no single factor is determinative; the outcome depends on a balanced assessment of relevant factual circumstances.
• Regular and extended stays, consistent use of utilities, and presence of essential amenities supported the claim of main home.
• Written, documentary evidence was deemed critical in substantiating claims of main home status rather than mere assertions of intent.
• The tribunal’s decision was consistent with previous case law and existing HMRC guidance.

Legal Principles

• Determination of a main home for CGT purposes requires consideration of the actual use and connection to the property.
• Documentary evidence, such as utility bills and presence of personal effects, is essential in proving main home status.
• Stated intentions carry less weight than documented, factual indicators of use.
• Reliance on HMRC guidance and precedent ensures consistency and predictability in applying PRR relief.

Conclusion

Morgan v HMRC [2013] UKFTT 181 (TC) established that documentary and factual evidence, not mere ownership or stated intent, are key in determining a taxpayer’s main home for CGT, reinforcing the importance of records and legal precedent in Principal Private Residence claims.