Grrr!

alicemaylara

Just when i thought i got Personal Tax another silly Question comes up

Question
rebecca bought a house on 1 jan 1997 for 70,000. she lived in the house until 31 dec 2001 when she moved in with her elderly parents. the house remained unoccupied until she sold it on the 1 june 008 for 205000. this house is rebeccas only property

Now I presumed it was exempt because it is the only property she has bought but in the answer they have calculated the capital gains Is it because she was not living there for more than 3 years?....I thought that didnt matter if its the only property you have

Can anyone clarify this for me,

Thanks

brett316

She did live in it for more than 3 years but I think its because if you dont occupy the house you have to come back and live in it a certain period before you sell it to be exempt?

Gem7321

When she moved in with her parents this became her PPR. So her property would be subject to CGT but the period 1/1/97-31/12/01 + 36 months would be exempt.

This question was in the DFS exam I sat and caused a lot of confusion!

alicemaylara

Ah, ok I think I get it but if she had gone back to that house for say a month then sold it would it be exempt?:confused1:

Steve Collings

Gem7321 wrote: »

This question was in the DFS exam I sat and caused a lot of confusion!

Hi Gem,

Which sitting was this? I'm intrigued because I've not come across it when I've done the suggested answers for DFS before???

Many thanks

Steve

CelticStar

I think the poster above mean the PTC exam not DFS, it was actually in the June 2008 exam - it caused a bit of a furore on here at the time.

Steve Collings

Aaah, that would fit. I was trying to figure out how a DFS examiner could examine PPR in a DFS paper as Ltd Co's don't get PPR!

Many thanks.

Steve

CelticStar

You're welcome,Steve, glad it helped. I know the question because it was ingrained in my mind when I took the exam and there was real uproar on here about it afterwards.

Gem7321

Oops, sorry, definitely meant to say PTC!