»Ê¹ÚÌåÓýapp

TCGA92/S224 (3) denies relief when the dwelling house has been acquired for the purpose of realising a gain from its disposal, or there has been subsequent expenditure for the same purpose. »Ê¹ÚÌåÓýapp Section is very widely drawn. It also applies where the acquisition or the expenditure was only partly for this purpose.

Anyone who buys a dwelling house is likely to hope that, in the fullness of time, they will make a gain on its disposal. One house may be chosen over another because its value is more likely to appreciate over time. »Ê¹ÚÌåÓýappse cases could be said to fall within the words of the statute but relief should not be restricted.

It would be unreasonable and restrictive to apply the legislation in this way. »Ê¹ÚÌåÓýapp subsection should only be taken to apply when the primary purpose of the acquisition, or of the expenditure, was an early disposal at a profit.

Circumstances in which the subsection can apply are explained at CG65243. Examples to illustrate this are at CG65257, CG65270 and CG65271.