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PPR and permitted area and 30 day reporting

CGT ppr reporting

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Client has today completed sale of large country house compring of 8 bedrooms, formal gardens, tennis court, stables, small copse and comprising 4.5 acres of land in totaL. Given the nature of the property and the area of the country, I am fairly confident that it could reasonably be argued that the lnad is fully coverd by PPR. As such I assume that the client does not have to file a return within 30 days on the basis taht I do not believe any CGT due. The disposal will be fully reported within next years SA return and relief PPR relief claimed. Secondly, if HMRC successfully argued that not all the land was covered by the exemption, would the excess be chared at 20% or 28%.  The only residential building has been the house.

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By Matrix
03rd Jun 2020 23:56

If it were fully covered by PPR then why would you put it on the tax return?

I would complete the CGT return and disclose why you think the permitted area can be exceeded, if this is what you advise your client having done more work.. Also if it was not residential the what was it, was it used for a business? And did your clients not ask for advice before they sold? I think you need to do more work, there was a case involving stables where the excess was denied.

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By Justin Bryant
04th Jun 2020 08:49

This question (more or less) was in Taxation Magazine recently. See: https://www.taxation.co.uk/articles/readers-forum-narrow-window

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By nospmelc1234
04th Jun 2020 09:01

Thank you Justin, most helpful and appreciated

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By Accountant A
15th Jun 2020 18:22

'h'

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