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Hi All,
Please could you help me with q2 of the paper F6 UK Sep 16?
On 31 March 2016, Angus sold a house, which he had bought on 31 March 2002.
Angus occupied the house as his main residence until 31 March 2007, when he left for employment abroad.
Angus returned to the UK on 1 April 2009 and lived in the house until 31 March 2010, when he bought a flat in aneighbouring town and made that his principal private residence.
What is Angus’ total number of qualifying months of occupation for principal private residence relief on the sale of the house?
A 72 months
B 54 months
C 114 months
D 96 monthsMy attempt:
31/03/2002-31/03/2007 occupied = 60 months
31/03/2007-31/03/2009 abroad = 24 months
01/04/2009-31/03/2010 occupied =12 months
31/03/2010-31/03/2016 not principal residence = 72 months
Total= 168 monthsQualifying months = 168(total) – 72(not principal residence)-24(abroad).
Correct answer: 168 – (72 – 18) = 114 months
Why?? Where did the 18 come from?
Thank you!
The period abroad qualifies for PPRR as he left for work purposes and then returned to the house.
The final 18 months of ownership is ALWAYS eligible for PPRR regardless of circumstances as long as it was the PPR at some point.
Thank you Chris, really appreciate it.
So leaving abroad for work purposes qualifies, and the final 18 months qualifies as long as it was the principal residence at some point.
Thanks again!
I answered this exact question the other day, a few post further down the forum list. You’ve already got the answer to your question now, but here’s my reply to the other person, if it’s any help.
I think it’s 114 months.
You don’t count the number of months that are actually occupied. You also don’t count periods when working abroad, for any number of months. Nor do you count the last 18 months, as long as there has been previous occupation at some point.
That only leaves 4.5 years of absence. As he owned the house for 14 years that’s 9.5 years of deemed occupation. 9.5 x 12 (months) = 114.
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