Share this content
14

CGT on letting out part of PPR?

Will there be a proportion charge? Is a separate entrance relevant?

Didn't find your answer?

Client is considering letting out part of their PPR of 30 years whilst remaining living there. Possibly the basement, possibly the attic...

I think I may have heard mention of a separate entrance being relevant to CGT?
What are the CGT implications (if any) of this?

Replies (14)

Please login or register to join the discussion.

avatar
By Accountant A
06th Nov 2019 12:35

Is there some reason why, when you post questions on here, you never say "please" or "I'd be grateful if someone could ..."? You just bark out demands for information like you are talking to some underling. Why?

Thanks (0)
Replying to Accountant A:
avatar
By Tax Dragon
06th Nov 2019 12:52

At least the OP has a history of thanking folk. That's more than can be said of too many OPs.

On this occasion, the question needs work for other reasons. The lack of clarity is more relevant, from the point of view of answering it, than the lack of politeness. What exactly is the question?

Thanks (1)
Replying to Accountant A:
avatar
By RG
06th Nov 2019 15:34

Probably because I have Aspergers syndrome and forget to adhere to social norms. I try to remember but don't always succeed.

Thanks (0)
Replying to RG:
By ireallyshouldknowthisbut
06th Nov 2019 14:13

@rg, FYI, I didn't think it was blunt, thought you were just busy!

Thanks (1)
Replying to Accountant A:
avatar
By jcace
06th Nov 2019 15:01

Please let us know whether you consider your response to be polite?

Thanks (0)
avatar
By lesley.barnes
06th Nov 2019 13:26

You will need to expand on the question. Is this just one lodger at a time - in which case its rent a room and exempt from CGT. Is the homeowner planning on having more than one lodger at a time or converting part of the house to a self contained flat?

Thanks (1)
Replying to lesley.barnes:
avatar
By RG
06th Nov 2019 14:05

I'm not certain, but the reference to CG64309 gave me the info I need to find what I thought I remembered about seperate entrances

Thanks (0)
avatar
By MJShone
06th Nov 2019 13:30

Have you looked at HMRC's CGT Manual? See, for example, CG64309
"There are also buildings which although appear from the outside to be a single dwelling house, they are in fact split up into separate self contained units. Each self contained unit is itself a dwelling house.

Whether or not such a self contained unit exists is a question of fact. In order to be a separate dwelling house the unit will have all the facilities one would expect in a home, such as kitchen, bathroom, bedroom, etc. The unit might be structurally separate from the rest of the building like a flat or it may be merely sealed off. It will usually have a separate access to the outside or to an outer door or common staircase. It should also be capable of separate sale."

Thanks (1)
Replying to MJShone:
avatar
By Tax Dragon
06th Nov 2019 13:41

PRR may need just and reasonable apportionment under s224(2) irrespective of all of that. A separate entrance to the attic may or may not be relevant in establishing the tax treatment.... ah, have I just answered whatever the question is?

Thanks (1)
Replying to Tax Dragon:
avatar
By The Dullard
06th Nov 2019 13:53

Is the lodger Father Christmas?

Thanks (0)
Replying to The Dullard:
avatar
By Tax Dragon
06th Nov 2019 14:00

I hear he's signed a 30-year lease and needs the basement as well for Dasher, Vixen, Cupid and co.

Thanks (0)
Replying to Tax Dragon:
avatar
By RG
06th Nov 2019 14:06

indeed

Thanks (0)
Replying to MJShone:
avatar
By RG
06th Nov 2019 14:06

Perfect, that's just what I needed, thank you!

Thanks (0)
Replying to RG:
By ireallyshouldknowthisbut
06th Nov 2019 14:14

@RG you might also want to look if it qualifies under "rent a room". Depends if its a self contained thing, or part of the same dwelling.

Thanks (0)
Share this content