What is a PPR?

[cheeky.chick@ntlworl]

I have recently inherited my mother's house. My father still lives there (he has a life interest) but he does not own the house.

However, my father has inherited my mother's half share in my own residence. IHT is not an issue.

For CGT purposes, we are trying to decide if my father should gift his half-share of my PPR to me now, or whether he should leave it to me in his Will.

Could he declare my residence to be his PPR (but continue to reside in the house I have inherited from my mother)? If so, would that negate any CGT liabilities if he gifted his half share to me?

Or do you actually have to physically live in a house for it to be a PPR?

Thank you.

[Ian McTernan CTA]

You should ask the solicitor acting regarding the estate to deal with this situation as it seems to me that a deed of variation may be the best solution.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com