Share this content

For SDLT additional 3%

Are there any deeming provisions for Main Residence as for CGT purposes?

Didn't find your answer?

Client is in work related accomodation and is selling a rental property which (could be, of course its not yet) deemend as their PPR for CGT purposes and buying another one more suitable for them in the longer term.

There is no immediate intention to occupy the new property due to work related accomodation

Poking around the SDLT manual and legislation I cant seem any equivalent deeming provisions for CGT with which I am familiar. 

This is the only section i can find with HMRC's view is SDLT09812 which is silent on deeming but does state you must live there.

The legislation just says "the purchaser's only or main residence" under condition D without defining main residence other than the following section (6)

https://www.legislation.gov.uk/ukpga/2003/14/schedule/4ZA/part/2

Feeling I am looking for unicorns here, but is there just not an equivalent to the CGT side?

Replies (8)

Please login or register to join the discussion.

avatar
By David Ex
20th Sep 2021 16:59
Thanks (1)
avatar
By Justin Bryant
20th Sep 2021 17:24

I confirm you looking for unicorns here and there is no similar/equivalent SDLT deeming rule to s222(8) TCGA 1992.

Thanks (1)
Replying to Justin Bryant:
By ireallyshouldknowthisbut
20th Sep 2021 17:46

thanks Justin. I just saw the CIOT's raising this in 2019 for Armed Forces.

Thanks (0)
Psycho
By Wilson Philips
20th Sep 2021 17:50

For the avoidance of doubt, I assume that your client owns more than one property?

Thanks (1)
Replying to Wilson Philips:
By ireallyshouldknowthisbut
20th Sep 2021 18:03

Several

Thanks (0)
avatar
By Hugo Fair
20th Sep 2021 18:06

Why would you expect an "equivalent to the CGT side" (in terms of SDLT) ... they have unrelated objectives.
The former is intended to avoid discrimination of those who are forced to reside in work related accommodation for some years - and the latter is a disincentive to those buying more than one property (thereby prolonging an over-heated market).
Whether or not you agree with these objectives, they are quite distinct IMHO.

Thanks (1)
Replying to Hugo Fair:
By ireallyshouldknowthisbut
20th Sep 2021 18:32

@Hugo, I understand where you are coming from, but the point is those in job related accommodation are normally allowed to treat the property "as their home" for CGT so its reasonable to ask if the equivalent exists for SDLT. i the home is replaced by another one, as you might ordinally do if you lived in it.

Depends what way you look at it. Be interesting if it was possible how they would stop abuse.

Thanks (0)
Replying to ireallyshouldknowthisbut:
avatar
By Hugo Fair
20th Sep 2021 20:00

I quite agree that it's reasonable to ask ... I was just giving my opinion as to why the same logic hasn't been applied in both cases (essentially because logic doesn't come into it as we didn't start with a piece of blank paper - and different driving forces were applied by different people to each set of laws).
The same kind of lack of logic of course applies all over the place - e.g. the concept of 'employment status' in the hands of HMRC (IR35) or in the hands of HR lawyers.

Thanks (1)
Share this content