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Where Taxpayers and Advisers Meet

Purchasing the freehold of PPR house - CGT implications?

Possom
Posts:5
Joined:Thu Aug 14, 2014 11:18 pm
Purchasing the freehold of PPR house - CGT implications?

Postby Possom » Thu Aug 14, 2014 11:27 pm

An owner occupier of their leasehold PPR *house* (not apartment), on which they pay ground rent, purchases the freehold of their home. The result if they no longer have to pay ground rent.

If, at some time in the future, they decide to sell their home, which is now a freehold house are there any tax implications? Could it be argued that purchasing the freehold made the home worth more, and liable to CGT or some other tax on the amount this increased the value of the home by?

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: Purchasing the freehold of PPR house - CGT implications?

Postby section 44 » Fri Aug 15, 2014 9:15 am

Assuming that the dwellings continues to be their PPR, there would be no tax liability on a sale.

Possom
Posts:5
Joined:Thu Aug 14, 2014 11:18 pm

Re: Purchasing the freehold of PPR house - CGT implications?

Postby Possom » Fri Aug 15, 2014 9:48 am

Thank you section 44.


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