Capital gain and PPR

I need your help with this


1. Mr Fox bought a house on 1 August 1992 for £50,000. He lived in the house until 31 July 1995. He then went abroad to work as a self-employed engineer until 31 July 2000. He then returned to the house and lived there until 31 January 2001, when he moved out.

Mr Fox sold the house on 31 July 2010 for £180,000.

(a) Which periods are treated as occupied and which are not?
(b) How you will treat the self employment period?

Any help will be appreciate,

Thank you,
Daniela

Comments

  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    Not strictly an answer, but this is how I would tackle it:

    01/08/92 - 31/07/95 - EXEMPT (PPR)

    01/08/95 - 31/07/2000 - LIVING ABROAD FOR WORK - look up the exception for living away from home due to work, and find out whether self employment counts. This will answer a) and b).

    01/08/2000 - 31/01/2001 - EXEMPT - PPR

    Remember last 3 years is exempt whatever was happening with it! so this will cross into the living abroad period.

    Good luck.
  • daniella75daniella75 New Member Posts: 11Registered
    Not sure about self employment period, I don't think it's count. Our tutor said that we shoud count just for 4 years, same like for absence from home due to UK employment, but I am not happy with this answer.
    Thank you
  • NiaNia Feels At Home Posts: 72Registered
    I'm sure it's up to 3 years exempt if working abroad, so long as he lived there before and after...
  • NiaNia Feels At Home Posts: 72Registered
    sorry, I'm wrong. Just checked my notes its:
    up to 3 years for any reason
    up to 4 years working elsewhere in the UK
    any period spent working abroad (doesn't specify employed/self employed)

    and last 3 years of ownership (unconditional)
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