Relocation expenses and 'temporary' accommodation

[section 44]

I have relocated and had intended to rent a home whilst I sell my old home and buy a new home.

With the housing market having taken a nose dive I now find myself unable to sell my old home and after a few months of listing it for sale (evidence to support this) I have decided to rent it (for 10 months) and see how the market fairs next year.

Leaving the capital tied up will prevent me from buying a new home at present.

Will the rent on my rental property (10 months lease) qualify as temporary accommodation?

[Peter D]

'Temporary accommodation' may be, but for what, deduction from tax, expenses. It is not clear. The good news is that your original property will be exempt from CGT for 36 months, Read IR283 on the HMRC web site and if you have been declaring the rental income/loss then letting relief will be granted to further offset CGT up to the vlaue of £40,000. Regards Peter

[section 44]

For the purposes of the £8,000 exemption for relocation expenses.

[Peter D]

Is that not for moving your business not for moving your residential home. You need to provide much more information. Regards Peter

[section 44]

Employment relocation expenses to be reimbursed (hopefully gross) by employer. Main expense is rent.

[Peter D]

This is all down to the T&C's of your company relocation policy. I have come across companies that do and some that do not allow rental payments as part of the relocation package. You need to ask them initially. Regards Peter