It is always worth remembering in these situations that occupation needs to have a sufficient degree of permanence and continuity in order to qualify as "only or main residence" for PPR purposes. If the property was sold after just 3 months, it doesn't sound like it was ever intended to be very permanent. I fear the taxman may challenge this one.
If it does qualify (perhaps the property was sold at very short notice and only due to unforeseen circumstances) the next stumbling block is where he was living while he was away, as section 223(7) of TCGA 1992 states that there must have been no other residence or main residence eligible for relief during the period of absence.
You get a bit more leeway if you were in job-related accommodation. Then you merely needed to have had an intention to re-occupy the property as your only or main residence. However, job-related accommodation is very tightly defined and most people are unlikely to qualify, unless perhaps they were serving members of the armed forces.
Thanks Cfield, detailed and thorough guidance, as always :-) much appreciated
Where was he living whilst the property was being let?
You may also have to consider whether the final 3 months’ occupation was ‘genuine’. No-one here will know the answer to that.
Thanks, have enquired about this and although a response is still awaited from client, Im going to suggest to claim PPR only for initial actual occupation and the last 18 months deemed occupation, and not to make a claim for "three years" which may prove hard to justify later. Thanks for your help on this
Can split year treatment be applied to a UK domiciled, partly resident?
A UK client working in Oil & Gas offshore company was paid UK pay ( fully charged for UK tax under PAYE) and internationap pay (with no tax deducted) by the same employer. International pay relates to the time spent oversease for the same employer.
Client has been fully UK resident in previous tax years, but is partially UK resident for the relevant year and subsequent year too.
Company paid all (UK & international ) pay (in GBPs) into UK bank account.
My understanding is that being UK domiciled and partly UK resident and the fact that international part of pay was not subjected to any foriegn or UK tax, split yeat treatment cannot be applied and full UK tax should be charged to ALL employment income.
This sounds like normal relief at source pension contributions, so enter in box 1: Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’). Enter the payments and basic
rate tax.
Relief at source contributions do not change the gross or taxable gross pay, as they are deducted from net pay with the related basic rate tax being claimed by the pension scheme.
Thanks everyone, it clarifies my understanding on this
If you have to ask the question (and then ask it in the way you have) then you are not qualified to be advising on the matter. Sorry, but it really is that simple. If you have PII, you need to read the conditions.
Great help, thanks alot
JDBENJAMIN said the same and you thanked him.
I thanked all, its always helpful to have a response atleast, regardless of whether it supports immediately or signposts for a better research
My answers
Ok thanks, apparently our local council is aiming to handle such claims too,but obviously with some detailed checks and verifications
Thanks Cfield, detailed and thorough guidance, as always :-) much appreciated
Thanks, have enquired about this and although a response is still awaited from client, Im going to suggest to claim PPR only for initial actual occupation and the last 18 months deemed occupation, and not to make a claim for "three years" which may prove hard to justify later. Thanks for your help on this
Thanks Joe :-)
Hi, I have a related question to the above.
Can split year treatment be applied to a UK domiciled, partly resident?
A UK client working in Oil & Gas offshore company was paid UK pay ( fully charged for UK tax under PAYE) and internationap pay (with no tax deducted) by the same employer. International pay relates to the time spent oversease for the same employer.
Client has been fully UK resident in previous tax years, but is partially UK resident for the relevant year and subsequent year too.
Company paid all (UK & international ) pay (in GBPs) into UK bank account.
My understanding is that being UK domiciled and partly UK resident and the fact that international part of pay was not subjected to any foriegn or UK tax, split yeat treatment cannot be applied and full UK tax should be charged to ALL employment income.
Am I taking the right approach?
Thanks in advance
Thanks everyone, it clarifies my understanding on this
thanks,
EDIT: I'd focus on what gives the right answer, ie, full tax relief if he has been given none, etc..
scheme is claiming basic rate relief, would you class it as partial relief obtained, and use box 1? effecting extension of tax band only?
Thanks, and for the foreign tax credit amount? Do we get an estimated tax bill to be paid in South Africa and use that figure?
Thanks Wilson
What do say about about the second sale? Which year to include that?
Thanks
I thanked all, its always helpful to have a response atleast, regardless of whether it supports immediately or signposts for a better research