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CGT on disposal of Connected Parties Flat

Tax on Disposal

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Brother and sister purchase flat 50:50 from their own funds in 2009 200K. Property is let to various parties until 2014 - where it is occupied by sister. Brother moves overseas to Canada and resides there from 2015 and remains there . Sister pays no rent. I get there is PPR for the sister for the period from 2014-  can i rebase the property? As there is no rent paid by the sister is there any relief for the brother ? 

 

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By David Ex
12th Sep 2021 11:00

IrishSanj wrote:

can i rebase the property?

Not sure what you mean although I suspect the answer’s no.

IrishSanj wrote:

As there is no rent paid by the sister is there any relief for the brother ? 

Again, not totally sure what you mean. I can’t think of any reliefs and also I assume that the Canadian tax authorities may have some taxing right which you need to consider.

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Replying to David Ex:
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By Tax Dragon
12th Sep 2021 11:49

David Ex wrote:

which you need to consider.

Wouldn't be in any engagement letter I'd sign.

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Replying to Tax Dragon:
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By David Ex
12th Sep 2021 14:28

Tax Dragon wrote:

Wouldn't be in any engagement letter I'd sign.

Thanks for letting us know.

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By Paul Crowley
12th Sep 2021 12:15

Is the house being sold or is this a planning excercise?

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Replying to Paul Crowley:
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By IrishSanj
12th Sep 2021 13:01

sold

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By Montrose
12th Sep 2021 14:32

Articles 6 and 13(1) of the UK/Canada DTA deny brother possibilty of treaty relief from UK CGT., and he is subject to the UK 30 day return and payment rules.

Occupation as PPR by sister is not a deemed acquisition. It merely determines the fraction of the total gain qualifying for PPR relief.
The connected party rules do not appear to be relevant in these circumstances

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