PPR, elections and periods of absense

PPR, elections and periods of absense

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I have a situation where an individual has a house in London which is his private residence and then acquired a hotel in the country which also became his residence. At that stage he elected for his London house to be his PPR.

Later he sold the hotel so a revision was made to the election so that the hotel was PPR for a week, giving him some relief on the sale for the final 3 years. (All of the mixed use asset calcs were done, showing this to be the most tax efficient approach).

There are obviously periods of absence from the London House and although he is taking up residence again in London, the legislation allowing certain periods of absence to count towards the exemption states that there must have been no other residence qualifying for relief during the absence.

Have we come unstuck here, or does the PPR election in favour of the London house take prescedence?

I realise this is probably a fairly fundamental issue, but I'd really appreciate guidance.
wotshisname

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By AnonymousUser
05th Dec 2007 16:34

Double claims
I think this is just drafting to ensure that while you are absent and claiming that as an allowable PPR absence within the meaning of the legislation, you cannot otherwise claim another home as PPR. Otherwise you would get relief twice over at the same point in time for 2 different PPRs. Hope that makes sense!

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