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Where Taxpayers and Advisers Meet

Deemed Occupation for carers living away

Bonny
Posts:3
Joined:Sun Aug 30, 2020 8:57 pm
Deemed Occupation for carers living away

Postby Bonny » Sun Nov 29, 2020 9:44 am

Hi

I've sold my only home and care for an elderly sick relative and live in his home to do this.
During the ownership of my home I was also caring and lived with him more so as the illnesses 'progressed'. I then rented my home out in those periods as I could not work and care at the same time.
I have about 20 days left of the 30 day limit to make the CGT declaration. I paid tax on the rental income as required.

I am told by an accountant that carers do not qualify as employed absence and therefore do not get deemed occupation relief for the periods I was living away from my home and renting it out. Is that correct please? It seems really unfair if it is.

I lived in my home for three years before this happened. It was never my intention to have to do this. I moved back into the property when my last tenant left for about ten months during which time the property was going through a very extended conveyancing process due to soliciter delays and the lock down and it was risky leaving it empty. I still had to sleep away for most of each week as i had to care still (my relative gets night time attendance allowance).

I am told I get the first 3 years and last 9 months relief only but had i been employed and working away from home I would have got relief for the periods of abscence. During this time I was receiving carer credit, and as the illness progressed carer allowance which is now my only income.

The difference is substantial in terms of the tax bill and I want to understand if I am eligable or not ,and why, for the deemed occupation for the periods I could not live there .

I'm not an accountant and don't understand the tax rules (although I've now done some reading online since finding this out!).

any thoughts?

Thank you for your time :)

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

Re: Deemed Occupation for carers living away

Postby bd6759 » Sun Nov 29, 2020 12:12 pm

The deemed occupation rules require that the dwelling becomes a residence again after the absence, so your accountant is correct.

Any absence for whatever reason, up to 3 years, can be a period of deemed occupation if you make the dwelling your home again.

Bonny
Posts:3
Joined:Sun Aug 30, 2020 8:57 pm

Re: Deemed Occupation for carers living away

Postby Bonny » Sun Nov 29, 2020 12:28 pm

Thanks for answering.

I did live there again as my home since january this year until mid november this year,and when I moved back in I had no offer of purchase, that happened during that period. My clothes and my stuff was there, furniture , bed etc. The electrics and gas and council tax were all in my name and connected in that time until the sale completed.

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

Re: Deemed Occupation for carers living away

Postby bd6759 » Sun Nov 29, 2020 3:57 pm

It’s not a residence if you moved back in with intention of moving out again. That’s the problem. “Residence” doesn’t mean occupation. There needs to an intention of permanence which is missing from your scenario.


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