Principal Private Residence claim

[Daniel2020]

Is there a time limit for trustees to claim PPR on a life interest trust when the sole beneficiary lived in the property for the entire period of the trust?
Thanks

[maths]

Yes.

Where a notice under s 8A TMA 1970 has been served on the trustees the deadline for filing a claim is 12 months from 31 January following the end of the relevant tax year
eg tax year 2019/20. Deadline 31 January 2022.

Where no such notice has been served the deadline is 4 years from the 5 April of the relevant tax year.
eg tax year 2019/20. Deadline 5 April 2024.

[Daniel2020]

Yes.

Where a notice under s 8A TMA 1970 has been served on the trustees the deadline for filing a claim is 12 months from 31 January following the end of the relevant tax year
eg tax year 2019/20. Deadline 31 January 2022.

Where no such notice has been served the deadline is 4 years from the 5 April of the relevant tax year.
eg tax year 2019/20. Deadline 5 April 2024.

Thank you for taking the time to reply.

[Daniel2020]

Where no such notice has been served the deadline is 4 years from the 5 April of the relevant tax year.
eg tax year 2019/20. Deadline 5 April 2024.

Could you give me the reference for 4 years please as I could not find it on the HMRC website.

[maths]

Legislation is contained in Taxes Managreement Act 1970 (as amended).

Section 42.
Section 43 for 4 year limit.

[bd6759]

The time limit is 4 years in all cases.

S42(2) only requires that the claim is made in the return, or in an amended return, if it is possible. After the time limit for amending has expired it is not possible to make the claim in the return, but a stand alone claim is still possible until the 4 year limit has expired.

Any claim made outside a return during the amendment window will be treated as if it were and amendment to the return.

[maths]

The interaction between TMA 1970 ss 42 and 43 has over the years been debated. HMRC have expressed views which is in line with bd6759's views.

The issue which arises is whether the dates of filing tax returns and amended returns also dictate the timing when claims must be lodged.

I believe that the majority view is that the timing of claims is laid out in s43 with s42 more of procedural section (ie it provides for the mechanism of lodging a claim). This then means that once the amendment of a return window closes any claim cannot then be made in a tax return but must be made in some other form eg by way of letter.

Perhaps I should have responded in more detail in my first post.