Member Since: 23rd Nov 2013
18th May 2021
Totally agree I don't think its a reasonable excuse either just wanted to check if Companies House were still being lenient. He had already missed the deadline when he came in to see us so not alot we could do
8th Apr 2021
Thank you also again to Dullard .. much appreciated!
Shall we swap pseudonyms?!!
8th Apr 2021
Thats great many thanks for your guidance Tax Dragon.
I have now subscribed to access Croner i and can see the updated version of S223 (7B) which clearly says "the requirement that there should be no other residence eligible for relief has been dropped".
Got there in the end and sorry for dragging it out. Until recently I was part of a larger set up with access to other resources and this episode has highlighted to me the need to ensure resources like Croner can still be accessed.
Thank you again
8th Apr 2021
Many thanks again for the detailed feedback. To be honest I'm still not 100% sure I've got it but I greatly appreciate the time and effort you have all kindly put into it.
So my understanding of the feedback is that he does qualify for relief for periods of absence for any reason (even though he has use of another house he owns whilst he is absent).
If I have still got this wrong I would really appreciate it if you could let me know so I don't end up getting it wrong!
The question of whether renting a property out for 4 months constitutes business use is a grey area but not really relevant if the period of absence is allowed anyway.
I have found it really frustrating trying to key into the actual legislation Tax Dragon and Dullard have referred to, to try and fully understand everything; I just can't find a link straight into the legislation. Is it something that has to be subscribed to somewhere?
7th Apr 2021
I envy the handle you guys have on the detail of these types of questions. I have been googling and researching the question of PPR relief on the UK property and deemed periods of absence since before Easter. I reckon I've spent over 6 hours on it and couldn't come up with the guidance you have knidly provided.
My reading of everything I read was that as he had another house (which he owned) available to use (in France) whilst absent from the UK house then he could not claim relief for the deemed period of absence for the 4 months a year he was away. I hadn't come across any reference to S222 being rewritten in 2015 during that time researching and I've just been googling for another hour since your really helpful advice and I still can't find the revised wording of S222. I find it so frustrating sometime and its not for lack of effort!!
To be honest I'm just in awe of how you find the information.
If I understand it correctly what you seem to be confirming is that under the current revised wording as the french house is not eligible to be his PPR (because the UK house is his PPR) then he can claim deemed residence for the 4 months a year he is away from the UK house.
How/where do I find the wording of the revised S222?
Also just renting the whole house out for 4 months a year does not constitute a business and therefore these 4 months do not need to apportioned out of the PPR claim.
It seems you are both saying loud and clear that so long as the UK property is his PPR based on the facts (which I believe it is) then a full claim for PPR relief can be made.
Many thanks again
7th Apr 2021
Thanks Matrix. The french house was fortunately sold in December 2020
7th Apr 2021
A big thank you to both Dullard for very useful feedback and Lion again for retrieving Dullards original post.
Happy with the position on the french house. It was his PPR for the 4 years he lived there full time and last 9 months. With that PPR relief the UK CGT due on the french sale is less than the french tax already paid.
Just one thing on the french tax. The french have recently replaced the social security contribution payable on sale (which could not be offset against UK CGT) with a 7.5% Solidarity Tax. So French tax payable on the sale (less allowable indexation in France) is 19% + 7.5%. I believe the Solidarity Tax paid in France can also be offset against UK CGT payable on the french property.
Re the UK property. I was surprised that the whole of the UK gain would be exempt. That sounds like good news.
For 2 reasons I thought the period of 4 months a year that the UK property was rented out would not qualify for PPR relief but happy if I have misunderstood the rules.
Firstly .. I thought that the 4 months a year that he was away from the UK property and renting it out (whilst he lived in his french property for those 4 months) would not be eligible for PPR because I read that to qualify for full relief during a "period of absence for any reason" no other eligible residence should be available for use during that period of absence. In this case the french residence was available during the period of absence so my thought was that a claim for PPR for the periods of absence on the UK house could not be made for those 4 months a year.
Secondly .. I also thought that if the house was used exclusively for business purposes (ie rented out) at any time then the relevant portion of the gain (ie 4 months a year) would not qualify for PPR relief.
However if I have misinterpreted and the whole of the UK gain is exempt that would clearly be a good result.
4th Apr 2021
Hi Lion thank you for your comments
Do you think it is possible to also claim PPR relief for the 4 months a year spent at the French House since 2014?
I thought initially maybe he could claim the 4 months PPR against the UK house for "periods of absence for any reason" but as he owned and used the house in France for those months I believe that precludes a claim on the UK house for those months .
I did not think he would be able to claim PPR relief against the french house for the 4 months a year he spent there since 2014 but maybe he can?
Could one argue that if the UK house wasn't available for use for those 4 months (as it was rented out) then for those 4 months the french house must have been his PPR?
Is it possible to claim PPR relief on 2 different houses for the same year if you are claiming for different periods of time within that year so 8 months PPR on the UK house and 4 months PPR on the french house.
7th Mar 2021
Thank you for all the useful feedback greatly appreciated
My conclusion is that
1. The CGT return does have to be filed even if a SATR is also prepared; the filing of the SATR does not relieve the tax payer from the responsibility to file the CGT return. Both have to be filed if there is a taxable gain (except if the tax payer only has a taxable CGT gain and does not normally do a SATR in which case they only have to do a CGT return).
2. If the CGT return is not filed there are £100 and then £300 penalties (if it is really late).
3. There are no daily penalties for late filing.
4. There are no penalties for late payment of the CGT after the 30 days only interest charged at 2.75% unless of course it is not paid before February 28th 2022 in which case a 5% payment penalty kicks in.
Hope I've understood correctly
23rd Jan 2021
I believe DHL and DPD are offering what they call a DTP (duties and taxes paid) service which might enable U.K. e-commerce sellers to carry on selling to the EU in a fairly smooth way - I don’t know if they are offering this to all customers or what the small print is but on the face of it, it looks like an option.