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Period of absence on second property

Absence from second property

An individual owned a property and moved to rented accommodation and rented his original property. I am aware of the PPR and letting relief calculations but am unsure if further relief can be claimed regarding "any period of absence of up to three years for any reason". No PPR election was made and I believe that HMRC will base the claims for relef on the facts of the occupancy. Prior to and after the letting, the original property was occupied as the PPR. Is a period of up to 3 years absence rule irrelevant as the original property was rented out and no election made?

The sale is in 2017/18 so the rented dwelling doesn't seem to affect matters as HMRC advise - For sales or disposals prior to 6 April 2015 there was an additional requirement that during the period of absence you had no other dwelling house eligible for relief.

Although the second property is not owned and the tenancy had no capital value strictly the property he rented would have technically qualified for relief.

Any pointers welcomed.

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08th Dec 2018 18:33

possep wrote:

Although the second property is not owned and the tenancy had no capital value strictly the property he rented would have technically qualified for relief.

What relief? And relief from what?

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By possep
to Tim Vane
08th Dec 2018 19:10

Sorry Tim that this was not explained well.
Say for instance the property was owned for 14 years and lived in as PPR at times (prior and post rental) for 3 years(excluding any period in the last 18 months) then the gain relating to the PPR element would be 4.5/14 and the gain from the rental would be 9.5/14. The lettings relief comes out at the same as the PPR element of relief being the lowest figure. I believe that's the total extent of the relief. What confused me was whether any absence of up to 3 years could be treated as a period of occupation. I don't think so now as this would cover part of the period when the property was rented.

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