PTC Jun 08 Past Paper Help!

mi|kshake

Hi,

Am just working on the June 08 past paper for PTC and am a bit confused by the answer to Task 2.1. The info given is:

Rebecca bought a house on 1 January 1996 for £70,000.00. She lived in the house until 31 December 2000 when she moved in with her elderly parents. The house remained unoccupied until she sold it on 1 June 2007 for £205,000. The house is Rebecca's only property.

The answer shows 3 periods of occupation/non-occupation whereas I only had two in my answer (01/01/96-31/12/00 & 01/01/01-01/06/07) The answer shows the periods 01/01/96-31/12/00, 01/01/01-31/05/04 & 01/06/04-01/06/07.

Thanks!

mi|kshake~

farmergiles

I think you'll find that the last period is the 36 months you are allowed to discount

ambitious

And just to add to that you can do whatever you like with the PPR (Principal Private Residence) in those last 3 years. Rent it out, move to another holiday home, go on a 3 year holiday, work abroad etc and it will still count as 3 years of occupation. Not bad I must say.

mi|kshake

^Think that helps - I had worked it out differently. I had set a table showing the number of months listed under the headings Actual, Deemed & Absent and had a different answer, but I must have made a mistake along the way somewhere.

Thanks!

mi|kshake~

paulihutch

Im still confused on this! Dont you also get 3years for any other reason so therefore cant you take 3years from her time living with her folks as deemed occupation?

mehmet

Deemed Occupation Rules

Firstly, the final 36 months of ownership is deemed occupation as long as the house was the owners PPR at any given time during the ownership. Unlike the other rules, he does not need to come back to the house afterwards.

To claim residence for other periods of absence,

"both before and after the period of absence there must be a time during which the dwelling house is the individual's only or main residence." (HMRC definition), and

no other property is being treated as PPR during period of absence.

Provided this is the case, the owner can claim:

- a period of absence of any length throughout which they worked in an employment outside the United Kingdom,

- a maximum of four years during which they could not live in the house because of Employment within the United Kingdom, and

- periods of absence, for any purpose, which do not exceed three years in total.

Also remember that absence can be claimed for a combination of reasons, e.g. if there was a period they were absent due to UK employment of 5 years, they can claim 4 years because of the UK employment rule, and the other year can be claimed as part of their 3 years for any reason.

So, in answer to your query, they can't be claimed as part of the any reason as she does not return to the house after she leaves it.

paulihutch

thanks mehmet, that makes sense! Gotta do well on this paper cos i dont want two resits in June (did the PCR this morning!:001_unsure:)