PPR elections

PPR elections

Didn't find your answer?

Assume that a person owns two properties and resides in them both.
A valid ppr nomination is made.
After 5 years, he stops using one of the properties (say property b) but continues to live in the other property (property a).
He does not own any other properties.
Property b is sold after another 4 years.
The nomination is not changed.

When property b is sold, will ppr be granted for the entire period of ownership, or restricted to when the property was, in, fact used as a problem residence plus the final 18 months.

I ask as a book I have read says that the entire gain would be covered and it seems counter to the way the relief works

Replies (2)

Please login or register to join the discussion.

avatar
By Duhamel
28th Apr 2016 09:43

The property
must be a residence for the election to be valid. You don't say which property in the example has the election.

Thanks (0)
By Paul D Utherone
28th Apr 2016 10:31

Presumably you mean

a valid nomination for (b)?

Once they stop using (b) they only have one main residence so should I think revert to the facts and (a) is their main residence, so that (b) is exempt as you suggest with a chargeable period between stopping using the property & the final 18 months.

Depends what they do with (b) when they stop using it. There might, for example, be letting relief available to cover the gap if that's what happened.

And of course for all the time (a) is not used as fact, or does not have the nomination it will be chargeable.

Thanks (0)