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Where Taxpayers and Advisers Meet

CGT on a non profit rental

Crin272
Posts:2
Joined:Fri May 21, 2021 7:33 am
CGT on a non profit rental

Postby Crin272 » Fri May 21, 2021 7:42 am

Morning all, looking for help with my scenario as HMRC seem to be somewhat ambiguous.

In July 2015 my wife and I brought our current and only property as a sole residence. Between May 2016 and April 2018, we let the property out (and submitted self assessments as such), as we were working overseas for this period. When we returned to the UK in April 18 we immediately moved back into the property and have continued to live there ever since, and are now in the process of selling it to move to a new property.

During the two years, my wife and I worked overseas (not for HMG), and let out our property, we made zero profit and actually a loss, given the existing mortgage cost and letting fees.

Based on my reading of HMRC's guidance I believe this may entitle us to full PPR but, im not a 100%. Any guidance would be most welcome.

Many thanks

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: CGT on a non profit rental

Postby Jholm » Fri May 21, 2021 9:04 am

It sounds like full PPR is available since you were working overseas, which can be considered deemed occupation for that period.

Please note.... I have come across many people claiming they have made a loss, after deducting mortgage costs. However, upon advising that it is only the mortgage interest that is deductable (and now it is only 20% relief thereon), many actually do make profits for tax purposes. Not sure if this is relevant for you but something to be mindful of.

FYI, PPR pivots entirely around the time in occupation vs ownership. Previous profits, losses or other such are n/a.

Crin272
Posts:2
Joined:Fri May 21, 2021 7:33 am

Re: CGT on a non profit rental

Postby Crin272 » Fri May 21, 2021 9:44 am

Many thanks for the quick response Jholm, and yes I was aware of the interest only issue, fortuantely (or unfortanetly) there was a lot of interest, so definetly made a loss.


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