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Hi,
I have 2 questions regarding PPR.
Firstly, the last 36month before we sell the house we can claim as if it is occupied right ? What if during the last 36months we let out the house ? Should we claim this period as PPR or letting relief ?
Secondly, can we claim PPR on 2 different house at 2 different time ? Eg: I claim PPR on my house last year. After sold it and getting a new house, I will claim PPR on the new one too.
Thank you.
i think the last 36 months can be claimed as an exemption regardless whether if you live there or not. so you can still let out the property during the last 36 months and still be deemed occupation.
So when you calculate letting relief, you need to deduct the exempted months from the letting months too, so it would include the last 36 months of ownership.and for the last question, yes i think you can do that. PPR is for main residence property. If you sell your main residence property, and buy another, you can claim that one for PPR.
I believe I’m right but it’s from my memory rather than checking my study notes :p
I would say you consider those 36 months as deemed occupation so ignore it for letting…
Once you start letting a place out the lettings relief kicks in
Lettings relief
Let period (excl final 36 months) Relief value is the lowest of :
A) PPR figure
B) Gain in let period
C) £40,000PPR can only be on one house as that house has to be declared to HMRC. You can claim PPR as many times as you like in a life time and you can even change PPR if you own more than 1 house by declaring it to HMRC.
HMRC (outside of exam scope) will look at things that tie you to a property if they decide to challenge your PPR. Such as where your children go to school, council tax bills, bank statements,where you work etc
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