1. Home
  2. UK Finance Discussions
  3. CGT on former PPR

CGT on former PPR

Hi

I've been reading through the various posts on this and have a basic understanding of exemption rules for PPR and the last 3 years being exempt if a property was at any point during ownership the PPR. I also think I understand the residential letting limit of £40,000 if a property that has been the PPR has gone on to be let. However, could someone tell me what the rule is for periods of unoccupation after a property ceases to be PPR, but before it is either sold or rented? For example, say a house was bought in 2000 and was PPR until 2005, then empty until 2007 and the rented until perhaps 2010?

Thanks

James

Reply to
James
Loading thread data ...

There is no relief for periods of non-occupation other than by way of the three-year rule. In your example, no Letting Relief is available during the last 3 years because PRR is already available, and this is not restricted as a result of the letting. So you can't just say that you'd get 5 years of "real" PRR plus 3 years of "36 month rule" PRR plus 3 years of LR, makes 11, which is more than 10, so none of the gain is taxable. Instead it would go like this: The first 5 years qualify for "real" PRR. The next 2 years get no relief. The last 3 years would qualify either for LR or PRR but not both (and it's simpler to use the latter). So 2/10 of the gain is taxable (but don't forget Taper Relief).

Reply to
Ronald Raygun

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.