PTC - another PPR question

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mini_schnauzer
mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Going through June 2008 past paper.

Question 2.1 regarding Chargeable gain or loss on disposal of house.

Bought a house for £70,000 on 1 Jan 97.
Live in house unitl 31 Dec 2001 - then moved in with elderly parents.
The house then remained unoccupied until it was sold on 1 June 2008 for £205,000.
The house is her only property.

I put total months of ownership at 137 mths.
60 months occupied.
36 months being the last 3 years of ownership and 36 months absence for any reason.
Total of only 5 of the 137 months chargeable to CGT.

The official answers say 41 out of 137 months are chargeable to CGT - why have they discounted one of the 36 month period?

Thanks in advance

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  • wonderwife2008
    wonderwife2008 Registered Posts: 41 Regular contributor ⭐
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    Because the PPR is the house she is living in even if she doesn't own it you can't use the 3 yrs for any reason if you have another PPR in force at the time
  • koda
    koda Registered Posts: 52 Regular contributor ⭐
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    The 36 months for any reason can only be used if the person has lived in the house before and after... when she moved out of the house she never moved back in again, therefore you are unable to apply this rule in this scenario.

    If when she moved out to live with her parents and then moved back in again for a period of time before she sold it, the inbetween period (well, up to 36 months of it) would be exempt.
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
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    Think you can only have the last 36 months as the period of deemed occupancy
    cant have the other one because they didnt live in it before and after

    not sure where they get the extra 5 months from but perhaps the question is missing some stuff
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor 🦉
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    Thanks to you all, I understand now.
    Every one says PCT is the easiest - so it will make it all the worse if I fail it!
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 Regular contributor ⭐
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    I don't think it should be billed as the easiest it's just the scenarios are less open to interpretation ... the rules are the rules ... which makes the calculations "slightly" easier .. if it's anything like BTC they'll throw in a few curve balls and probably something I've completely glossed over in the text book :)
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    I always calculate the total ownership wrong by a month. Anyone got an easy way of calculating the total ownership as I usually spend ages counting months?
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 Regular contributor ⭐
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    Write it down usually takes up most of the page when i do it .. makes it clearer (I also use my fingers!!) Do it in years and months and then work out the total months. Makes it less of a muddle. Either that or do yourself a diagram e.g rectangles and split each rectangle into 12 colour in as you go!!
  • koda
    koda Registered Posts: 52 Regular contributor ⭐
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    I usually count the number of whole years then times by 12 to get the total months for those years. Then add up on my fingers the months in any partial years and add these to the total.... breaking it down bit by bit I find easier to manage.
  • jewels.p
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    koda wrote: »
    I usually count the number of whole years then times by 12 to get the total months for those years. Then add up on my fingers the months in any partial years and add these to the total.... breaking it down bit by bit I find easier to manage.

    Thats exactly what I do but am always one month wrong (dont ask) Oh well if everyone uses their fingers like me I wont look so silly tomorrow!

    PPR is a nightmare!
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 Regular contributor ⭐
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    There's guaranteed to be a PPR and I'm guaranteed to get it wrong :)
  • Lou1234
    Lou1234 Registered Posts: 210 Dedicated contributor 🦉
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    jewels.p wrote: »
    Thats exactly what I do but am always one month wrong (dont ask) Oh well if everyone uses their fingers like me I wont look so silly tomorrow!

    PPR is a nightmare!

    I'll be using my fingers as well! I worry I'll look silly but hey ho!

    I ignore the months of the year I'm starting with if I am part of the way through one and count whole years from the Jan of the following year through to the December before the year I want. Then add on the extra months from the start and the end! Hope that makes some sort of sense!
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
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    i am getting confused now with my revision and ppr. if they rented out the last 4.5 years as rental before selling, as they were not in the house at the end , does the 3 years count on that final bit. the wording that the property has to be occupied both before and after is confusing me - please explain any clever people out there
  • wonderwife2008
    wonderwife2008 Registered Posts: 41 Regular contributor ⭐
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    The last 3 yrs count as deemed occupation as long as the property has been occupied as a PPR at some point...

    The other rules about deemed occupation only apply if the property is the PPR at some point before and after the period.

    Hope that helps!

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