My client, who moved abroad to Canada to work in 2019, is about to sell their former UK home that has been let out for a couple of years as well and i must confess this is above my pay grade as i always say no to any clients who have non resident issues.
Simply (if it is as i cannot see a definitive answer) i am unsure if the fact that they lived in the property until 2019 as main residence can be used in the calculation of the gain as all i read about the 6th April 2015 value talks about the gain accrued since that date but nowhere can i see that they can claim it as PPR until it was let thus reducing the gain.
The facts (rounded for ease) are as follows;
- Purchased 2010 for £325k
- 6th April 2015 value £400k (next door (identical terrace house) was marketed in Jan15 at £415k and completed sale in Jun15 for £400k so we are confident of value)
- About to be sold now for £475k
- Occupied as main residence 2010 to 2019 when went to Canada
- Let out late 2019 to early 2022 (3 years)
- Empty so far in 2022
In the 7 years since April 2015 the gain is £75k but the property was his PPR until 2019 so 4 of the 7 years - is that amount of the gain allowed to still be claimed as PPR - apologies i am new to this and cannot find a definitive answer
I just need to give him an estimate (and also advise he will have to declare it ) of the potential CGT and the best route - eg do we look over the whole 12 years of ownership if we can still claim PPR or use the 2015 valuation method?
Thankyou for any help