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There may be times when the owner is prevented from living in his or her main residence for reasons that are not the owner’s by choice. It would be unfair for him or her not to be eligible for Principal Private Residence (PPR) relief for that period of absence.

‘Deemed’ occupation is only possible where the taxpayer is absent from the property and has no other residence eligible for PPR.

There is no minimum period of occupation for PPR relief but usually the house has to be physically occupied as a residence before and after any period of absence. Should the reason for the absence be that the owner was working away, then he or she does not have to return to the house if work subsequently requires residence elsewhere.

Absences can be cumulative as long as one of three conditions applies:

1. any period of absence – maximum three years, or
2. overseas employment (not self-employment) of the owner or spouse/civil partner – unlimited period, or
3. employment elsewhere (employed or self-employed) of the owner or spouse/civil partner – maximum four years.

Example:
Stephen has a PPR property in Surrey but has worked in Wales for six years. His mother lives in Scotland and has recently become ill. Stephen intends to take unpaid leave from his job and be her carer.

He can do so for just one year to retain PPR on his Surrey property under the ‘deemed occupation’ rules.
 
His six years working in Wales have used:

• Condition 3) – four years – employment elsewhere in the UK.
• Condition 1) – two years – any period.
• One year remains under condition 1).