This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Retain PPR on fractional ownership of a rented (out) house

langtonbrow
Posts:73
Joined:Tue Mar 10, 2009 1:52 pm
Retain PPR on fractional ownership of a rented (out) house

Postby langtonbrow » Fri Jan 17, 2025 2:59 pm

Hello

My mother will go into a care home. She has 25% ownership of her PPR. The remaining ownership is split between her son and a discretionary trust. The property is split into my mothers annex and the remainder of the property. Will it be possible to rent out the remainder of the property to assist with care home fees whilst retaining my mothers annex as unrented, thereby retaining partial RNRB status to the advantage of any eventual IHT bill. In short are rentals divisible in this way and does the "proportionate" approach operate within guidance?

thank you

AGoodman
Posts:1928
Joined:Fri May 16, 2014 3:47 pm

Re: Retain PPR on fractional ownership of a rented (out) house

Postby AGoodman » Mon Jan 20, 2025 11:38 am

You can apportion the value under s.222(10)

There's some limited guidance around https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64736 but you may well want to get proper advice.

AGoodman
Posts:1928
Joined:Fri May 16, 2014 3:47 pm

Re: Retain PPR on fractional ownership of a rented (out) house

Postby AGoodman » Mon Jan 20, 2025 11:40 am

My last reply covered PPR (which was the title of your post).

RNRB could would apply to the whole property provided it has all been her home at some point in the past. If only the annex was ever her home, then RNRB would be limited to that. See also downsizing relief which may well help (if she has had a larger house in the past and sold all or part, the full value might be claimed).

langtonbrow
Posts:73
Joined:Tue Mar 10, 2009 1:52 pm

Re: Retain PPR on fractional ownership of a rented (out) house

Postby langtonbrow » Mon Jan 20, 2025 5:14 pm

Many thanks for your consideration of this. Agreed that I slightly confused the question by conflating two separate but related issues.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”