This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Private Residence Relief

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm
Re: Private Residence Relief

Postby bd6759 » Fri Mar 16, 2018 11:21 pm

They acquire their first home in the UK on 6 April 2018 and W immediately returns to the UK and lives in the property throughout the 5 years they own the property. A joint PPR election is lodged in favour of the UK property.
They nominate their UK home as opposed to what? In the scenario described, no election is possible.

It is their only home, therefore PPR is due (and that is before we consider the various deemed occupation provisions)

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Private Residence Relief

Postby bd6759 » Fri Mar 16, 2018 11:22 pm

PS
In which case they jointly share the full PPR - even if he never comes back at all?
As long as they are not spearated in "marital" sense

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Private Residence Relief

Postby maths » Sat Mar 17, 2018 4:56 pm

etf

If the overseas accommodation was simply rented (no lease involved) then an election to identify the main residence cannot be made as there are not two residences. A married couple can only have one residence and as it was jointly purchased (ie no inter-spouse beneficial interest transfers) each spouse obtains PPR for the period commencing 6 April 2018.

coxy
Posts:9
Joined:Tue Mar 13, 2018 6:44 pm

Re: Private Residence Relief

Postby coxy » Wed Mar 21, 2018 11:59 am

PS
In which case they jointly share the full PPR - even if he never comes back at all?
As long as they are not spearated in "marital" sense
Yes agreed . There must be no marital breakdown throughout. And in which case absence, by either spouse, must be irrelevant since both have their own continuous PPR, even without nomination?!

coxy
Posts:9
Joined:Tue Mar 13, 2018 6:44 pm

Re: Private Residence Relief

Postby coxy » Wed Mar 21, 2018 12:30 pm

etf

If the overseas accommodation was simply rented (no lease involved) then an election to identify the main residence cannot be made as there are not two residences. A married couple can only have one residence and as it was jointly purchased (ie no inter-spouse beneficial interest transfers) each spouse obtains PPR for the period commencing 6 April 2018.
Not true? Any legal tenancy should qualify but a mere licence to occupy would not.

etf
Posts:1278
Joined:Mon Nov 02, 2009 5:25 pm

Re: Private Residence Relief

Postby etf » Fri Mar 23, 2018 3:50 pm

Thanks for the responses from all.

Richard Curtis covered this topic in an article published in Taxation on 19 September 2012. (It had a title of "No Other" which is a reference to an LP from Gene Clark who I've never heard of so he is probably ancient)

A property that is occupied under licence (eg a hotel, lodgings, staying with friends) does not give a legal or equitable interest.

So, on closer inspection, because he is renting a property, it seems that Mr Clark would be well advised to make an election under s 222(5) because he has an interest – a tenancy – in the property, whereas if he had only been occupying a flat, say under licence from his employer or even a friend, an election would not have been necessary.


Richard made the point in his article that legal people he had spoken to had never heard of an individual surrendering an assured shorthold tenancy for a premium/an outgoing tenant assigning the lease to a new tenant for a premium and he therefore suggested the rules be changed so these types of tenancies should not require a PPR election.

KR

etf


Return to “Capital Gains Tax, CGT”