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NRCGT Calc & PPR

How to show the time apportioned gain & calculate PPR

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Struggling with an NRCGT Comp that was submitted to HMRC by client last year - I am now completing SA Return & wish to query the computation.

Property purchased Sep 05 sold Aug 18.  Net Proceeds £505K, base cost £355K - Gain £150K. It was owned for 155 months of which 40 are post Apr 15.  Time apportioned gain therefore £38,709.  It was his PPR for a total of 66 months (including final 18 months) throoughout period of ownership (155 months).

He has therefore claimed PPR  of £16,482 (£38,709/155*66.  He has also claimed the same amount of LR - so net gain is £5,745.

Is the PPR calculation correct.  Should it be restricted to the period post April 15 only?

Should it be based on the total gain or the time apportioned gain?

Where do you show the time adjusted gain on the CGT Supplementary pages?

Altghough a NRCGT Return was submitted using the straight line calc, if it is more beneficial to use the rebasing method, is it possible to do so on the SA Return.

He doesn't have the NRCGT submission receipt - just a copy of the submitted return.  Should this be sent to HMRC with the return?

 

 

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By Matrix
14th Oct 2019 14:15

Have you checked the requirements for it to be his PPR post April 2015 have been met? I haven’t done one of these for ages but don’t you have to start with a value or at least compute a value at April 2015?

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By norstar
14th Nov 2019 14:21

The HMRC calculator is wrong with its treatment of PRR - so tread carefully! It merrily gives the last 18 months as exempt even if no exemption occurs after 5/4/15.

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