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Deemed Occupation condition changed re CGT?

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Hi,

I am studying to resit the ACCA's F6 UK Taxation exam.  The June sitting will use the Finance Act 2016, but I didn't buy the latest text book.  I thought with the latest Finance Act 2016 summary published by ACCA together with the latest exercise booklet, it should be enough.  If it is not covered by Finance Act 2016 summary, I then check the old text book based on 2015 tax, figuring principles should remain more or less the same.  

However, I come across this question on chargeable gains calculation re the deemed occupation on principal private residence.  In the old text book, it says any period working overseas deployed by employer is qualified for deemed occupation; but in the latest exercise test booklet, the tutorial says any deemed occupation will not be treated as such if it is not preceded and followed by a period of actual occupation.

This leads to my confusion.  Is the latest Finance Act 2016 changed this criteria, or the tutorial in the test booklet is wrong?

Thank you.

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By nogammonsinanundoubledgame
18th Apr 2017 08:24

I expect that someone will correct me if I have missed something, but I do not believe that there is anything in FA 2016 that changes the law here, and I suggest that the text book is poorly worded. Your best bet is to go to the source of the legislation itself, in s.223(3), 223(3A) and 223(3B) TCGA 1992. Not to be confused, incidentally, with s.222(8).

Note that section (3A) requires occupation prior to being posted overseas, but in some limited circumstances section (3B) will allow for PPR if prevented from resuming occupation afterward - see (3B)(b).

With kind regards

Clint Westwood

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