PPR relief question Capital gains

Mmansoor11y ago

following is a letting relief question: "On 30 Sep 2014, jane made a gift of a house to her grandson. house was bought on 1 Sep 2001 for 45000 and extended at a cost of 10,600 in Jun 2002. market value on 30 Sep 14 was 140000 jane occupied the house as her main residence until 30 Sep 2005 when she went to live with her sister. the house was rented out from 1 Oct 2006 to the date of deemed sale" In the answer to this question, the 3 year exemption for has not been taken. Why? thank u

TTTax Tutor11y ago#1

For the 3 year deemed period of occupation for any reason to apply, the taxpayer must take up residence again prior to the sale of the property which has not happened it would appear in this example. The taxpayer would only get the last 18 months of the period of absence as deemed occupation but would then benefit from lettings relief for the majority of this period.

Mmansoor11y ago#2

thank u!