If someone inherits a house, then lives in it (as sole residence) for a period, and then sells it they can claim private Residence relief (PRR) and pay no Capital Gains Tax. If PRR were not allowed then the taxable gain would be the sale price minus the probate value.
Does anyone know how long the period of residence must be to enable PRR to be claimed in such a situation?
Robert
The gain is partly exempt however short the period.
The gain is partly exempt however short the period.
There is not set period. The IR are unlikely to challenge PPR exemption for occupation of over 12 months.
Thank you, I had guessed it would be something like that. Robert
No, I was just thinking the OP is asking if there's a minimum period for someone to actually live in the property to get any PPR exemption and there isn't.
I've checked in CCH Capital Gains Tax p.239 "The gain is partly exempt if it was so used at any time during the period of ownership, however short the period for which it was the main residence." Despite this - on the very next page - "In Goodwin v Curtis (1998) STC 475, the court upheld a finding of the Commissioners that one month's stay while purchasing a permanent home was not sufficient to attract the relief".
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