Does the sale of a PPR, which was covered 100% by PPR exemption, need declaring on a tax return?
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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
Because ...
... if you do, you've disclosed it and there can be no "discovery" a few years down the line.
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.
is there a second property which is not PPR?
If not i don't see any reason to disclose this
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
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
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