[Tania]

Thanks 🙂

[Tania]

Hello,

I’ve a question in this regard. According to the PPR relief rules, if the taxpayer is in employment overseas (or anywhere in UK), he is not required to return to the property to treat it as deemed occupation period. However, in one of the past exam questions, the second “period of working overseas is not counted as a period of deemed occupation as it was not followed by a period of actual occupation”. This treatment conflicts with the rules. Why would it need an actual occupation when the absence was for work related reasons?

Here is the reference to Dec 2011 Question no. 3:

Jorge Jung disposed of the following assets during the tax year 2010–11:
(1) On 30 June 2010 Jorge sold a house for £308,000. The house had been purchased on 1 January 1993 for
£98,000, and throughout the 210 months of ownership had been occupied by Jorge as follows:

Months
16 Occupied
18 Unoccupied – Travelling overseas
24 Unoccupied – Required to work overseas by his employer
11 Occupied
30 Unoccupied – Required to work elsewhere in the United Kingdom by his employer
22 Unoccupied – Travelling overseas
26 Unoccupied – Required to work elsewhere in the United Kingdom by his employer
17 Occupied
12 Unoccupied – Required to work overseas by his employer
13 Unoccupied – Travelling overseas
21 Unoccupied – Lived with sister
––––
210
––––
Jorge let the house out during all of the periods when he did not occupy it personally. Throughout the period
1 January 1993 to 30 June 2010 Jorge did not have any other main residence.

Thanks in advance,

[Tania]

Thank you.

[Author]

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