PPR 3 year rule

PPR 3 year rule

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I have a new client who is selling a property that has largely been rented out. He did live in it for 2 years but it was never his PPR as he had a family home elsewhere and his occupancy in his other property was to save travel during the week. Does the final 3 years PPR relief still apply as he has lived in it though it has never been his PPR? Thanks

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By taxhound
14th Mar 2014 13:32

no

If he had two properties which were both available as his PPR at one time (as sounds the case here), then he could make an election within two years of the second property becoming available to elect which property should be his ppr (and then he could make a second election to change back a few weeks later if he wanted). 

If no election was made, then which property was his PPR will be a question of fact.  If the family home was his home before and after he used this one for a few days a week, I would suspect that HMRC would take the view that the family home was his ppr throughout, but it depends on the facts of the case.

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