Tax Forum :: Free Tax Advice

Hi there

Had 2 properties; a house sold 18 months ago, and a flat, selling very soon, going through.

Had the flat 5 years and lived there on and off for 3.5 years, then lived there permanently as our only residence, for the last 18months.

Please can someone tell us what tax the relief is for having lived there for 18 months.

Our total gain will be £70k before tax. Standard tax payers (two of us)

Thanks in anticipation

Corona

Did you own/occupy any other properties?
Did you elect the property as your PPR?
What does "on and off" mean, and why?

PPR will be 3/5 of gain (18m + 18m)
May be some letting relief (if let)
May be some further PPR if occupied as PPR during "on and off".

Thanks for your advice!

The answers to your questions are:-


Did you own/occupy any other properties? Yes.

What happened was there was property A, a house we'd had for 10 years; property B, the flat we're selling now and the one which the query is about, and property C, which we bought 6months ago and moved to from the flat B. So, We owned A for 5 years, then bought B (so we had both A and B). We flitted between the two for about 3.5 years then sold A.
We then lived at B for 18 months as my main home. We then bought C and moved from B to C six months ago.


Did you elect the property as your PPR? No unfortunately. Can we elect it now?
What does "on and off" mean, and why? We had to live at the flat to operate our small business which moved to where the flat is situated. We lived there for stretches of 2months until we sold A. After which we lived at the flat for 18months until we bought C 6 months ago.

Thanks for your help.



PPR will be 3/5 of gain (18m + 18m)
May be some letting relief (if let) Never let
May be some further PPR if occupied as PPR d

It's not clear to me why you get 36 months PPR instead of 18. The occupation overlaps with the last 18 months.

You can make a ppr election only when your residences change (and you have two years to make one) It's not obvious whether there is any useful election that you can now make (except that if you have two residences then you should always make an election as then you can change it.)

You don't say why you moved into the flat - if this was just while you looked for a house then you might not get PPR. At the time it became your PPR it must have been intended to be permanent.

(With hindsight you should have made a PPR election in favour of your main home when you bought the flat and then made one in favour of the flat 18 months before the house sale.)

Ok thanks