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Dear Sir, my study text says that only periods of absence for any reasons up to 3 years must be preceded and followed by periods of actual occupation (this rule is relaxed for up to 3 years of living abroad due to employemnt and up to 4 years of livivng elsewhere due to work). What does it mean? In my revision kit i have a task and a period of absence of living abroad due to employment, which is not followed by any period of actual occupation, is stated as chargeable.
Before the tutor comes……
The following are considered periods where you occupied the house though you were not there
1. three years out for any reason
2. Four years of working elsewhere IN THE UK
3. Employment Abroad (No limits)
Any of the above three are to be considered periods that you lived in the house, BUT …you must have actually lived in the house before and after such a period….Don’t forget that the last 18 months (of ownership of the house before disposing) are considered as periods that you actually lived in the house even if you didn’t live there.
As mosaso states other than the last 18 months of trading there are 3 periods of deemed occupation that may apply – for each of these at some point (not necessarily immediately) before the period of absence the taxpayer must have lived in the property and for reason 1 above the taxpayer must also live in the property at some point after the absence and prior to the disposal. However if for reasons 2 and 3 the taxpayer is prevented from returning to the property as they are still in the employment overseas or in the UK then they do NOT have to return to the property to get the deemed occupation
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