PPR relief with absence abroad

[Naz]

Hi, we bought our house back in 1985, lived in it as our family home for ten years. Moved abroad for work and have been renting out since to-date. Now considering returning back. Questions are:
1. CGT status if we sell this property before returning.
2. Must we establish residence in this property on return in order to qualify for PPR exemption?
Appreciate your thoughts.

[darthblingbling]

If you sell while non resident you'll only be taxed on the gain that accrued after the 5th April 2015. You can do this by either re basing the cost value to the market value for April 2015 or simply apportioning the gain for just the period after.

In terms of PPR, you would get the last 18 months as deemed residence and the rest you may be able to claim lettings relief for up to a maximum of £40,000.

If you sell while resident then you'll still get PPR for the time you could claim it was your main residence plus the final 18 months, plus you may get some deemed residency depending on the facts of why you left the property in the first place and whether or not you return to the property to once again make it your main residence.

[darthblingbling]

I can't edit posts, but to add, if you cannot claim deemed residency, you will once again get some relief via lettings relief up to a max of £40k.

[etf]

To qualify for a period of deemed occupation (e.g. where an owner is abroad by reason of employment) a period of absence must usually be both preceded and and followed by actual occupation. This means you require an actual occupation/deemed occupation/actual occupation sandwich.

A potential exception to the above rule arises where an individual is unable to re-occupy their UK home as the terms of his/her employment require him/her to work elsewhere. In this situation the period of absence can still be treated as a period of deemed occupation.

[Naz]

Thank you for above responses, much appreciated. So, I will plan to occupy the property on my return for a short while and then rent it out again. Would a period of one month be considered sufficient and what evidence must I collect to prove, should this be required?

[darthblingbling]

HMRC do not give any defined time before it is considered your main residence again, it will depend on the facts. There would need to be strong evidence of intent to show that the property is to be your main residence. So registering with a doctor at this address, changing your DVLA address to this address, be registered to vote at this address, etc.

[Naz]

Good day all;
We have decided to sell our property before returning to UK given following facts:
Owned for 32 year
PPR first nine years
Left PPR to work abroad, non-resident since to-date, property let throughout to-date
If we sell before returning to UK, I expect to claim following:
PPR relief first 9 years
exempt due to non-residence (from time we left UK to March 2015)
Last 18 moths (PPR)
Letting relief
Would very much appreciate comments.
Kind Regards