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PPRR for dwelling used for trade left empty

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Hi All,

Client has a dwelling where they let out multiple rooms and occupy themselves too. They stopped letting for a year before selling the property and only used it personally. PPRR to be apportioned between rooms used personally and those fully for business during the time it was used for business, but for the last year I'm not 100% sure. My thoughts are that PPRR would apply to the whole property for the last year since they are no longer trading (and still living in it themselves) but couldn't find anything to backup my thoughts. Just looking for a push in the right direction, thanks.

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By Joe Alderson
13th Oct 2021 14:17

When you refer to it being used for business is it a domestic dwelling attached to a commercial property or was it letting rooms out within the property for others to live in? If it's letting rooms out, then you need to consider were the rooms let under the rent-a-room rules or were the rooms being treated as let property?

If it's rent-a-room then PPR relief would apply for the full period to 19/20 then lettings relief would apply thereafter. If the rooms were treated as let property rather than rent-a-room then PPR relief would apply to the property not let, in the final year this would be the full property as it was the taxpayers home. You should also look up the rules for lettings relief as well in that situation.

I assume the property is a single address and is the clients primary residence?

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By Wilson Philips
13th Oct 2021 14:39

I agree with the above. Some more information is required as to the exact nature of the property, the nature of the occupation by others (eg what access did the owner/occupants have to the various areas of the property), the extent to which the owner occupied the entire property in the final 12 months (and indeed prior to letting if appropriate), had it been let from day 1, etc etc etc.

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By gainsborough
13th Oct 2021 15:34

+1 and also worth considering that the last 9 months of ownership may be covered anyway if the property was used wholly as the main residence at some point in the past.

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