Do sale of PPR's need declaring on tax return?

Do sale of PPR's need declaring on tax return?

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Does the sale of a PPR, which was covered 100% by PPR exemption, need declaring on a tax return? 

Replies (12)

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By bernard michael
27th Dec 2014 11:19

No !!!!!!

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By carnmores
27th Dec 2014 12:21

what happened to the box on the tax return
That said tick if you have sold your main home
if you have more than one property it might be worth considering a white box entry

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By fellowcraft
27th Dec 2014 12:50

Thanks. Whats the benefit of doing the white box entry? Just thinking that HMRC are challenging PPR's more now where people are buying 'do-er up-ers', living there 18 months and selling at a profit.

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RLI
By lionofludesch
27th Dec 2014 13:22

Because ...

... if you do, you've disclosed it and there can be no "discovery" a few years down the line.

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By TaxAngel
28th Dec 2014 16:12

Disclose to protect client

I agree with others - disclose in white space on return to protect client against discovery. For belt and braces job, explain reasons it qualifies as well eg not bought with a view to making a gain, lived in throughout/ give other details, only residence throughout etc.

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Kieran Phelan
By KPEM online
28th Dec 2014 22:31

is there a second property which is not PPR?
If not i don't see any reason to disclose this

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Replying to sallyrichardson:
RLI
By lionofludesch
29th Dec 2014 10:39

Fair Comment

KPEM online wrote:
If not i don't see any reason to disclose this

Agreed.

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By nogammonsinanundoubledgame
29th Dec 2014 13:36

Might disclosure save the aggravation of an enquiry ...

... arising from a report made by the Land Registry to HMRC stating that he has sold a property, no mention of which otherwise would appear on the Return?

That said, if there is no question over full relief being available, it really ain't going to amount to a hill of beans what you do.

With kind regards

Clint Westwood

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By fellowcraft
07th Jan 2015 06:49

Replies & wording of white box entry
There was a second property, but it was let out at the time he lived at PPR property (18 months). He made a large gain during this 18 months due to renovation, and I'm concerned that HMRC could argue he bought property with intention of making a profit, thus PPR not available. Even though this was not the case - he intended to live there permanently, but his business went insolvent & he needed to sell up.

Does this change any of the opinions?

Can someone please give me example wording of the white box entry I.e: "I sold [Full property address] on XXX and claimed PPR on the sale as this was my principal private residence", or would you have to disclose dates/amounts etc?

Thanks

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By nogammonsinanundoubledgame
07th Jan 2015 09:16

Is his main income source ...

... that of a builder in the construction industry?  That would certainly elevate the risks.  Likewise, has he done this before?

With kind regards

 

Clint Westwood

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Replying to gainsborough:
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By fellowcraft
07th Jan 2015 10:05

Not a builder

But he is involved in the property industry as a consultant. Yes he sold a property around 5 years ago at a small profit.

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By nogammonsinanundoubledgame
07th Jan 2015 11:27

All that these issues do ...

... is to affect the risk of an enquiry being raised, and of any adjustment arising from such an enquiry being subject to penalties (and the rate of penalty if so).

Whether the tax treatment adopted is correct is independent of what is entered in the white space.  Furthermore the effect of white space disclosure (and of its content) will vary according the particular inspector who reviews it (if anyone does).

It could be argued that disclosure increases the risk of enquiry but reduces the (potential) consequences, but there is no certainty.

I think that you and client have simply to decide what you are collectively comfortable with, and acknowledge that there are no guarantees.

With kind regards

Clint Westwood

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