Client purchases a home in London in 2001 and lives there until 2006.
Due to his job moving from London to Northampton in 2006, he and his wife move to Northampton, where they rent for a few months before purchasing a property. The house in London is rented out. After 16 months of living in Northampton he gets a new job in Newcastle, where he continues to work now. The property in London was rented throughout that time until it was sold in December 2021.
Can the additional 4 years be claimed under 223(3)(c) as PPR on the sale of the London property?
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https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65030
“ Any periods of absence up to a maximum of four years during which the individual could not live in the house - because of the situation of his or her place of work, or - because of any condition reasonably imposed by his or her employer requiring him or her to live elsewhere for the purpose of his or her employment,”
do you think his job moving to northampton with a potential commute of 1 1/2 to 2 hours meets the criteria of 'could not live in the house because of the situation of his place of work'? Then switching jobs to Newcastle within the 4 years does this continue to make him eligible?
No - the issue is s223 (7). The couple had another main residence eligible for relief in Northampton from 2006 (plus not re-occupied after the period of absence anyway by the sound of things?).
Were any PPR elections made?
No - the issue is s223 (7). The couple had another main residence eligible for relief in Northampton from 2006 (plus not re-occupied after the period of absence anyway by the sound of things?).
I must be going blind. I didn’t see that when I replied! I should be more careful!