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Capital gains tax and servant`s cottages

By: Language: English Series: Law Society`s Gazette ; 34(42) 18 November 1987, 3317-21(3)Publication details: 1987Subject(s): Summary: A substantial capital gains tax bill may await someone selling a servant`s cottage either individually or as part of an estate. The problem arises when the cottage is not the dwelling place of the taxpayer, and he is therefore not exempt from tax on the gain arising from disposal. Three cases recently considered this issue, Batey v Wakefield (1981) (WB1726-68); Markey (HMIT) v Sanders (1987) (Abs 37763) and Williams (HMIT) v Merrylees (1987) STC 445, reaching the conclusion that each case rests on the precise facts. It is up to the taxpayers` representatives to ensure that all facts favourable to the taxpayer are brought to the inspectors attention.
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Journal article London Journal article ABS38657 (Browse shelf(Opens below)) 1 Available 11801-1001

A substantial capital gains tax bill may await someone selling a servant`s cottage either individually or as part of an estate. The problem arises when the cottage is not the dwelling place of the taxpayer, and he is therefore not exempt from tax on the gain arising from disposal. Three cases recently considered this issue, Batey v Wakefield (1981) (WB1726-68); Markey (HMIT) v Sanders (1987) (Abs 37763) and Williams (HMIT) v Merrylees (1987) STC 445, reaching the conclusion that each case rests on the precise facts. It is up to the taxpayers` representatives to ensure that all facts favourable to the taxpayer are brought to the inspectors attention.