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!
Replies (3)
Please login or register to join the discussion.
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
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