CGT ON SALE OF PROPERTY USED FOR THE SUPPORTING PEOPLE PROGRAMME

CGT ON SALE OF PROPERTY USED FOR THE SUPPORTING...

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My client owns a three storey freehold property of which the top two storeys are occupied by  tenants funded by the local authority Supporting People Programme.  The ground floor is occupied by owner. These people are placed by the local authority and are tenants who require specialist help such as the homeless or ex-offenders.  My client receives housing benefit for each of the tenants plus a payment for approximately 30 hours a week for advice that he gives to the tenants such as banking, finance, shopping and day to day advice.

The housing benefit has been declared as rental income and the remuneration for his support work has been treated by the Revenue & Customs as self employed income.

My client is about to sell the property and has asked for advice relating to his capital gains tax liability.  I am aware that under the Adult Placement Scheme TCGA92/S225D would enable my client to claim private residence relief on the whole of the property.  Although the supporting people programme is to an extent very similar to the adult placement scheme, I cannot find any reference to this within the capital gains tax legislation.  Does anyone know whether occupation of part of the property, under the Supporting People Programme would deny private residence relief.

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By The Innkeeper
13th Oct 2014 12:06

Turn the caps
Off please

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