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