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Arthur bought a house on 1-1-1995 and sold it on 30-9-2016 making a gain of 189000.
He occupied the house as follows:
1-1-95 to 31-12-96 lived in the house
1-1-97 to 30-6-2003 employed overseas
1-7-2003 to 31-12-2008 travels the world
1-1-2009 to 30-9-2016 lived in the house
calculate arthurs CGT liability
So; my doubt is that in the answer in the kaplan text book; regarding the 1-7-2003 to 31-12-2008 arthur travels the world they have made 36 months exempt and the remaining 30 months chargeable (total 66 mts) giving the reason as 3yrs exempt for any reason but what i have understood from the lectures is that for the 3yr exemption rule to be valid the taxpayer has to return and live in the house before vacating again.
Could you please clarify my doubt and tell me what i have understood wrong?
What you say is correct but the question clearly states that after that trip Arthur DOES return to the house and lives in it prior to disposal therefore the 3 years for any reason will apply!