The appellant, Gary Ives, disputed a string of discovery assessments and penalties issued by HMRC under section 29 and s95 of the Taxes Management Act related to tax years running from 2003/4 through to 2013/14. The disputed tax and penalties totalled just under £1m.

The case at the First Tier Tribunal revolved around the sale of several million pound plus properties and whether profits from the sale of the houses were exempt from capital gains tax (CGT) as gains arising on disposals of the individual’s sole or main residence.

The main issue was whether Ives bought and sold these properties for profit via trading and if so, whether they were liable for income tax. Section 989 of Income Tax Act 2007 states that trade ‘includes any venture in the nature of trade’.

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