PCT pass exam 2009 dec

Peter bought this in November 2005 for £180,000 as a rental property. He never managed to rent it out, so he sold it for £250,000 on 1 February 2009.
so what's the chargeable gain or loss, if any, made on the disposal
please some one tells me why last 3 years are not deemed occupation?? thank you1

This unfurnished house is rented out for £800 per month. The property was occupied until 1 December when the tenants suddenly moved out, owing the rent for October and November. Peter knows he will not recover this rent. The property was let again from 1 March to another family
how come answer used 7 months?? it should be 6 months? can't i count now?? from april to sep is 6 months??


  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    There is no 3 year deemed occupation because it was bought as a rental property and was not his PPR at any point.

    I'm not sure about the second one as I don't have the paper in front of me
  • Esme
    Esme Registered Posts: 711
    April - 1st Dec is 8 months. Then 1 month for March. Take away the two months of irrecoverable rent.

    8 + 1 - 2 = 7

    He didn't actually live in the bungalow so can't get the last three years off as it wasn't a PPR.
  • flower
    flower Registered Posts: 160 ? ? ?
    We actually had this one in class. We were baffled by that too.
    Its actually 9 months and you take off the 2 months October and November that wont be recovered. Think you count December Jan and Feb. That gives you the 9.
    Quite confusing.
  • meibaker
    meibaker Registered Posts: 481
    ahh, i see, thank you everyone! didn't count the march month!
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