The property was a furnished holiday letting (FHL) for the first three years of ownership, followed by two years of residential letting and has been their principal private residence (PPR) for the remaining 10 years.
The question is around how they are going to claim relief on it.
Giles and Tim break down the query stage-by-stage; find out the answer in the video below.
The second question comes from AccountingWEB member taxiboy regarding gifts with reservation of benefit.
The question explains that the mum’s house has been gifted to her son, he then charges full market rent to the mum, he pays tax on that rent, but then he’s paying the net amount that he has received back to the mum.
Tim Good explains that it very much depends on the circumstances and how much malice aforethought there is in all this.
Find out the full answer in the video clip below:
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