A client married couple of mine had a second residential property that they rented
They then moved into this property to use as their PPR.
At that point they had made a capital gain of approx. £50k
Am I right in thinking that at that point a CGT liability crystallised?
If so, this was in May 2012, so how is the best way to approach the Revenue to disclose this without being heavily penalised?
Also can anyone advise what happened to the 3 year rule on PPRs.
Replies (7)
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The three year rule became 18 months only since 6 April 2014. I have no idea why you think a gain crystallised on moving into a previously rented property, although there may be a gain on the eventual disposal.
You seem to think a gain arises when a property becomes someone's PPR after a period of non PPR use.
It doesn't. A gain only arises when a property is disposed of. At that point the periods of use as PPR etc. will be taken into account in the calculation of the gain.