CGT PPR relief and letting

CGT PPR relief and letting

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A Client built a property in 1998 on land he already owned.  He was a self employed  tenant farmer some distance away and obviously could not live in the property as he had to stay in the tenanted farm to look after the animals. No PPR application was made on the new property.  He let the property for 3 years and when the tenancy of the farm was completed he moved into the property  and lived there for a further 7 years, 10 years ownership in total.  The property was sold at the end of 2008.  I realise he can get lettings relief but this might not be enough, hmrc are having an aspect enquiry on the sale of the surrounding land.   Am I reading it correctly that as he did not live in the property to start with he cannot claim the absence due to being self employed and living elsewhere.  What joy could i  get from hmrc on the concession D21 on making a late election as he was unaware he could make such an election!

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By carnmores
01st Jan 2011 09:52

i am looking at something vaguely similar

it may all depend on the tenancy and what type and how long it was for - i woud be very surprised if the  farm under tenancy qualifies as a PPR so unless he had an other property was a PPR election necessary - also what was his intention when he started building it - presumably it was to move in as soon as practical and this may have been before the tenacy finished ( and why did it finish). greater minds than mine will hopefully add or subtract from this    

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By chancewind
02nd Jan 2011 15:40

CGT ppr and relief for letting

The tenancy had been in place for many years and the second property was being built as a retirement home where they lived for a further 7 years.  It was rented out for 3 years before the farm tenancy came to an end.

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By carnmores
02nd Jan 2011 17:55

my thinking was that the tenancy was a wasting asset and not a P

so the building of the home would be the only residence and therfore PPR - and he could have lived in the new build if he wanted to he just chose not too- the question is does the fact that it was let out negate the principle of PPR  

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