CGT for UK res who was previously non-UK-res

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Client bought non-UK property in the 1970s. For the period 1972-1978, client was non-UK-res and the property was the main residence. Client then became UK-res and remains so to the present day.  Since becoming UK-res the property has never been the main residence. Property was sold 2019/20. The 31.3.1982 MV will be used in the CGT calculation.

As the property was the main residence at some time in the past, does the final 18 months of ownership qualify for relief? I don't know if the slightly unusual early years' history means that this relief is not available.

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By Matrix
23rd Nov 2020 16:09

No I think the period of ownership would start in March 1982 and it hasn’t been his PPR since then.

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Scooby
By gainsborough
23rd Nov 2020 16:19

...but see CG64943 below and the example on that page...

Private residence relief: ownership period: final period exemption
Although the period of ownership for Section 223 purposes is taken to begin at 31 March 1982, residence before that date can give rise to relief. This will be so even if no part of the dwelling house has been used as its owner’s only or main residence at any time after 31 March 1982. This is because Section 223(7) only limits the period of ownership for the purpose of Section 223, not for Section 222. A gain falls within Section 222 if the property has been used as the owner’s residence at any time in the period of ownership defined by Section 222(7), see CG64930-CG64933. If the gain falls within Section 222 then Section 223(2) allows relief for the final part of the period of ownership, see CG64985.

I haven't checked the legislation to see if this still applies but worth a further look.

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By Wanderer
23rd Nov 2020 16:34

Interesting that you say "For the period 1972-1978, client was non-UK-res and the property was the main residence."
Was there an election made then?

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Replying to Wanderer:
Red Leader
By Red Leader
23rd Nov 2020 16:38

No. For main residence, read only residence.

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Replying to Red Leader:
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By Wanderer
23rd Nov 2020 17:03

Okay, just re-read and it was a non-UK property.

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By The Dullard
24th Nov 2020 16:59

Yes. As gainsborough notes, s 223(2)(a) gives the last 9 (2020/21 on) or 18 (2019/20 and previous) months exempt "in any event" if s 222 applies, and the period of ownership in s 222 is not restricted by reference to 31 March 1982, as s 223 is.

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