In what is believed to be the first case in Singapore , the High Court today ruled that bad fengshui is a legitimate reason for the owners to sell their property, for which they should not be taxed on the profits.

It ruled in favour of a couple who argued that they had been compelled to sell their Waterside apartment they have owned for just over two years on this ground - and not because they had intended it as a trade.

The taxman had taxed the couple on the gains they had made from the sale of the Waterside flat, as well as three other properties, asserting that the couple were engaging in the trading of properties. The sales took place between 1993 and 1996.

However, Justice Judith Prakash ruled against the couple with regards to another property at Watten Close. She did not accept their argument that they had sold the two-storey house to avoid a legal dispute with their renovation contractor.