Newth Talks Tax: PPR and second property

Posted by AccountingWEB PM | on Mon, 01/12/2008 - 13:54 2840 1 comment

PPR and second property

An anonymous subscriber asked for confirmation that it was not possible to make an election for a second property to be the principal private residence where the taxpayer owned a holiday home which was lived in for two weeks and then let out to tenants. Also, what was the position where the second property was abroad?

Alan Webb confirmed that an overseas property is potentially eligible to PPR.

Continued...

Might be worth a try on the holiday home

AnonymousUser | Mon, 01/12/2008 - 16:26 | Permalink

"A property used for 2 weeks only as a holiday home is unlikely to be eligible on quality of use basis." Where the holiday home is likely to be (or has been) owned for a long time and the 2 weeks are every year, those 2 weeks might add up to the property being one of the taxpayer's residences. So long as the loss of a week's relief on the actual main residence isn't significant, I'd be tempted to make a one week election (to get the final 36 months) and argue about it come the disposal.