PPR HELP

PPR HELP

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My client acquired flat in 2003 on death of relative, let property for 8 months in 2003-2004 and did not occupy until Aug 2006 - July 2007 as main residence.

Bought second property in 2008 and made this main residence but is now deciding to sell flat to connected person in September 2011.

My client has not lived in the property since 2007 and has not sold the property within three years or made any nomination within two years of the date that they had a combination of residences.

Is it now impossible to claim PPR on the flat as no election has been made or can PPR and letting relief still be claimed for the occupation, final 36 months and the letting relief.

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By ACDWebb
16th Aug 2011 22:06

If

They lived in it as a matter of fact between Aug 2006 & July 2007 and have proof to back this up  (bank statements, council tax, notifying HMRC if the change of address even if not as a PPR election, etc), and/or it was their only relevant property in that time (not clear from the question) then there is no need for an election because it should be a matter of fact. In which case final three years & letting relief will apply.

Your problem may be getting the evidence to back up the claim if there was a second property owned and available in that period.

There have been a few cases at Tribunal in the last year or so where a lack of any real evidence (or in at least one case evidence that was not backed up by other facts that HMRC could corroborate and proved to the contrary) that fell flat on their faces and lost.

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