Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

Deemed occupation PPR

AuntieTAuntieT Feels At HomeRegistered Posts: 96
I've now finished my classes for Personal Tax and am going through the Text book checking that my notes/ idiot guides I've drawn up aren't missing anything.

I've come across something that seems to contradict what we were told in class.

Example 1:

Buy and move into house in London 1/4/90.
1/4/92 have to work from Glasgow office so move up there leaving house "empty".

1/4/02 move back to london house and sell it 1/4/08.

Here 4 years of the 10 I'm in Glasgow I can claim deemed occupation.


Example 2:

Same situation apart from,
1/4/92 move to Glasgow with work as before.
1/4/96 return to London

1/4/98 move to Liverpool with work
1/4/03 move back to London


How many years can I claim now for while away?

Thank you!

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Deemed Occupation - any period not exceeding 4 years where the owner was employed and required to work elsewhere in the UK.

    Deemed periods of occupation must usually be preceded and followed by a period of actual occupation, the re-occupation requirement is waived by extra statutory concession where the individual has been required to work elsewere in th UK and is unable to return home because his employment requires him to work elsewhere.

    In your examples:

    1.
    Yes, 4 years he was in Glasgow are deemed occupation.

    2.
    First period is 4 years so the whole of the time in Glasgow is deemed occupation.
    he then returned (clock is reset).
    In Liverpool for 5 years, so only 4 years are deemed occupation.

    So in total only 1 year is not occupied.

    PS i have gotten this out of my ATT Personal Tax book. Which bit do you think disagrees with what you have been told in class?
  • AuntieTAuntieT Feels At Home Registered Posts: 96
    Thanks for that!

    That is what I had understood, but the text book says:

    "Any period (or periods taken together) not exceeding four years"

    same with the 3 years anywhere rule so suddenly wasn't sure!

    Now just need to decorate kitchen with the bright blue idiot guides!
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I'm pretty sure the 2 periods in your example can be looked at themselves and both qualify and are not "taken together" , not really sure what taken together means in that context but both do qualify.

    I totally need to decorate the Walls too! My personal tax ATT exam is in 2.5 weeks and I am soooooooo far behind it's not true. Now where did I put the blu tak?!
  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    Monsoon wrote: »
    I'm pretty sure the 2 periods in your example can be looked at themselves and both qualify and are not "taken together" , not really sure what taken together means in that context but both do qualify.

    I totally need to decorate the Walls too! My personal tax ATT exam is in 2.5 weeks and I am soooooooo far behind it's not true. Now where did I put the blu tak?!
    I suggest wallpaper paste, rather than blu tak! It lasts longer and gives a perfect reason to buy some new paint or wallpaper once you've finished the exams! :lol:
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Rinske i have only just redecorated!!! Otherwise that is a good idea! :lol:
  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    Shame, was trying to get some more sales for my company here....

    Or maybe not.

    Maybe I should suggest to create some wallpaper with the tax rules all written out, to help tax students during their studies. Just a shame they would go out of date so fast. I'm just trying to imagine our wallpaper department actually painting the patterns now... :lol:
  • AuntieTAuntieT Feels At Home Registered Posts: 96
    The mind boggles.
  • Becky VBecky V Trusted Regular Registered Posts: 374
    Just wanted to say thanks for this aswell. It makes more sense now for me, i was struggling with this bit of the unit. I have my personal tax exam Tuesday!! When is yours?
  • AuntieTAuntieT Feels At Home Registered Posts: 96
    Mine isn't till 4th May.

    A lovely way to spend the Long Bank Holiday!

    Good luck for next week.
  • AuntieTAuntieT Feels At Home Registered Posts: 96
    And another question:

    If I am employed and go over seas with work - I get deemed occupation the whole time.


    However, is that the same if I'm self employed and go over seas.

    If so what is stopping the person who uses the 3 year "travel the world" from saying they were self employed for 10 years!

    Or what ever!
  • AuntieTAuntieT Feels At Home Registered Posts: 96
    Go out for a walk and things make more sense!

    If I'm employed I'll be paying tax etc....
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