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Claiming for Private Residency Relief

Where do I enter Private Residency Relief on my Self Assesment?

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I am completing my self assesment for capital gains tax. Where on the online form would I make the claim for PRR?

Tammie

 

 

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By K81
26th Apr 2018 13:37

I believe that you cannot use HMRC software to file your self-assessment tax return on line if you have a capital gain.

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By jcace
26th Apr 2018 13:51

If you are making any claim or election, enter the relevant code in the appropriate box.
PRR for Private Residence Relief where Letting Relief does not apply; LET for Private Residence Relief where Letting Relief applies.
The gain you should enter is the gain after any relief, claims or elections.

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By Justin Bryant
26th Apr 2018 14:17

Surely this is an automatic relief and does not need any claim therefore (like s162 incorporation relief)?

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Replying to Justin Bryant:
RLI
By lionofludesch
26th Apr 2018 15:35

It is - but you have to show it in your computation.

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Replying to lionofludesch:
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By Justin Bryant
26th Apr 2018 16:08

I agree, but most people do not bother and there seems to be no sanction for not bothering (not even an extended 6 year discovery assessment period if your accountant agreed the relief applied) and even if HMRC successfully challenge that relief I have never seen HMRC levy penalties for negligence etc. (assuming it was actually lived in by the person and was not a BTL property etc.)

Also, if no s8 notice has been received, then it seems no s7 CGT disclosure notification is due as there are no chargeable gains per s7(3)(b) TMA 1970 (assuming (a) & (c) also OK).

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Replying to Justin Bryant:
RLI
By lionofludesch
26th Apr 2018 16:22

Not sure what you're saying most people don't bother doing.

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By Justin Bryant
04th Jul 2018 13:57

Para 53 of the case below suggests I am right re no sanctions if an exempt PPR gain is omitted from an ITSA.

http://financeandtax.decisions.tribunals.gov.uk/judgmentfiles/j10502/TC0...

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By Tax Dragon
04th Jul 2018 14:31

No-one disputed that, Justin.

The paragraph in that case that alarms me is #11. Someone's going to get a rollicking when I get home.

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By Justin Bryant
04th Jul 2018 15:00

But people are commenting above that it needs to be shown in the ITSA calculation pages, whereas the reality seems to be that it can be totally omitted from the ITSA (and self assessed as automatically exempt per my above comment without any kind of reference) and any reference to it in the ITSA is essentially voluntary. Does anyone disagree and if so why?

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Replying to Justin Bryant:
Lone Wolf
By Lone_Wolf
04th Jul 2018 15:21

Justin Bryant wrote:

But people are commenting above that it needs to be shown in the ITSA calculation pages, whereas the reality seems to be that it can be totally omitted from the ITSA (and self assessed as automatically exempt per my above comment without any kind of reference) and any reference to it in the ITSA is essentially voluntary. Does anyone disagree and if so why?

Are you really so insecure that you have to resurrect a 2 month old thread to say "Look, look, I was right!"?

You are a sad, strange little man, and you have my pity.

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By Tax Dragon
04th Jul 2018 15:36

Although resolving issues is no bad thing. Aweb fancies itself as a searchable resource, after all.

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Replying to Justin Bryant:
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By Tax Dragon
04th Jul 2018 15:32

It's possible that you assumed that the gain was fully exempt, whilst other respondents assumed otherwise. Would you agree that if there is a taxable gain, the calculation of it would include the relief, and the tax return a reference thereto?

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Replying to Tax Dragon:
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By Justin Bryant
04th Jul 2018 15:46

Obviously my point concerns vanilla common PPR situations where there is no doubt there is an automatic exemption for the full gain (even Lone_Wolf got that point).

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Replying to Justin Bryant:
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By Tax Dragon
04th Jul 2018 15:37

Which may - or may not - have been relevant to the OP.

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Replying to Tax Dragon:
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By Justin Bryant
04th Jul 2018 15:41

Obviously you have to fill something in where there is a gain (after PPR). That was obviously not my point.

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By northernmonkey
26th Apr 2018 16:41

Not if Tammie is only claiming partial relief for PPR. For instance, if it were only her PPR for part of the period of ownership.

Tammie, its all very well asking where to make the entry but do you actually know how to calculate your entitlement, including any claim for lettings relief. If not, I suggest you seek professional advice from a local accountant.

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By Tammie
26th Apr 2018 14:29

Thank you for your help.

I have found where you put it.

Its in the working sheet under:-

Deduction, if any, in respect of reliefs and elections:£

Description of elections made and of reliefs claimed or due. Where applicable, give the amount:

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Replying to Tammie:
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By jcace
26th Apr 2018 14:32

Is lettings relief applicable too?

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By ireallyshouldknowthisbut
26th Apr 2018 16:11

shhs, le the unrepresented tax payer overpay if they are too tight to get an accountant

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Replying to ireallyshouldknowthisbut:
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By 356B
27th Apr 2018 12:32

What an immoral attitude.

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