Hi all
A client lived in his flat for several years then moved to the US for work. He rented out his UK property while abroad and then moved back on his return to the UK (4 years later). He then sold the UK flat approx 1 year after that.
He was renting a property in the US while working there.
I am aware that renting a property to live in does give him an interest in that property . Am i correct that as his UK property was rented out for the majority of his time abroad, it was therefore not available for his use as a residence and no PPR election was required? On this basis the full gain on the UK property would be covered by his PPR exemption (due to the deemed occupation rules)
Many thanks
Replies (4)
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I always thought the election was for people who had more than one residence. Pretty sure that assumes availability for use which letting would prevent.
Do you still have a taxable gain after all the various reliefs?
If the deemed occupation period when abroad does not apply (as no election was made when moving to the US)
Is an election required? No idea but if the client, as a fact, moved overseas for work then is that not sufficient? Is the relief in primary legislation?
I always thought the election was for people who had more than one residence. Pretty sure that assumes availability for use which letting would prevent.
Appears to be legislation on the matter now. Haven’t read it so no idea if it’s relevant to your case.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64577