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Capital gains tax & PPR

Capital gains tax & PPR

This is the scenario:

House was bought approximately 25 years ago. Clients lived there for about 9 years, until they moved out to live in a pub which they ran. They were tenants in the pub at first (always self-employed) until they later bought it (about 8 years ago).

They still owned the house bought 27 years ago until they sold it this year. The question is will PPR apply for the period when they moved out of the house and in to the pub? Can it be argued that this is job related accommodation even though they were self-employed?



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14th Nov 2013 15:46

Accommodation can be job-related for self-employed

Under s. 222(8A)(b) TCGA 1992, a self-employed person may have job-related accommodation provided that he is required as part of his contract to live on the premises (or some other specified premises) at which he is contracted to work.  As a tenant of the brewery or pub chain, he would obviously have been required to work at the pub - it is only a question of whether he was also required to live at the pub.  If so, the years he spent as a tenant would be deemed to be a period of residence in the original house, but that would cease when he bought the pub 8 years ago and it became his only residence.  See CG6455.

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