Hi all. I can't work out if I may rely on any of the following PRR allowances identified on www.gov.uk website.
"You’ll also get relief for the first 12 months you owned the home if both the following apply: •it was being built, renovated or you couldn’t sell your old home •you lived in it as your only or main residence at the end of the 12 months".
"You get relief if you were away from it for: •any reason for periods adding up to 3 years •up to 4 years if you had to live away from home in the UK for work •any period if you were working outside the UK". You must have lived in the home before and afterwards, unless your work prevented you.
So in light of the above and based on the following the exam question is what is my qualifying residence fraction for PRR calculation? a) 138/140 months, b) 54/140 months, c) 42/140 months or d) some other ratio?
1. I bought a flat as my home in Feb 2007 for £185k.
2. I renovated/improved the property when I first moved in. Renovation costs = £15k and I have all receipts and council building notices and building regs approval docs/certs to certify works.
3. After 2 years I got a new job out of area. I couldn't sell my flat due to credit crunch. New job too far away to commute daily.
4. Flat was rented out in Feb 2009 and I moved into lodgings nearer my new job. This is the status quo. I now want to sell my flat to buy a new home near my work.
5. Sale at £325k with assumed completion date October 2018.
So which of the following is my qualifying residence fraction for PRR?
a) 138/140. Made up as follows: 24 months residence + 18 months deemed + 36 months (any reason for periods adding up to 3 years) + 48 months (up to 4 years if you had to live away from home in the UK for work) + 12 months (property being renovated during first 12 months and I lived in property both during and after renovations complete).
b) 54/140. Made up as follows: 24 months residence + 18 months deemed + 12 months (property being renovated during first 12 months and I lived in property both during and after renovations complete).
c) 42/140. Made up as follows: 24 months residence + 18 months deemed.
d) Some other ratio, please advise.
Once I know what my qualifying residence ratio then we can discuss any applicable lettings relief and work out my final bill
Many thanks
Peter
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