CGT - Principal Private Residence query

Saltpot
Saltpot Registered Posts: 11 Regular contributor ⭐ ? ⭐
Please can someone help me with this query regarding the HMRC qualifications re Principal Private Residence? Are there any specific criteria that have to be fulfilled such as:-
1. Do you have to notify HMRC within a specific timescale or tax year?
2. Is there a minimum occupation period before the property can be deemed to be your PPR?
3. Are there specific criteria applied to justify PPR such as preparing/eating meals, sleeping overnight or perhaps caring for an infirm relative?
4. What evidence would be required/requested by HMRC to justify the PPR?
I hope someone can give me some advice as the HMRC web site is a bit vague on these points.
Thanks in advance

Comments

  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    Saltpot wrote: »
    Please can someone help me with this query regarding the HMRC qualifications re Principal Private Residence? Are there any specific criteria that have to be fulfilled such as:-
    1. Do you have to notify HMRC within a specific timescale or tax year?
    2. Is there a minimum occupation period before the property can be deemed to be your PPR?
    3. Are there specific criteria applied to justify PPR such as preparing/eating meals, sleeping overnight or perhaps caring for an infirm relative?
    4. What evidence would be required/requested by HMRC to justify the PPR?
    I hope someone can give me some advice as the HMRC web site is a bit vague on these points.
    Thanks in advance

    1. If the tax payer has two properties the tax payer has to notify HMRC which property they are choosing as their PPR.

    2. I don't think there is a minimum occupation period; HMRC look at the quality of the stay rather than the quantity, i.e. was the property genuinely the PPR at some period in time.

    3. I don't think so.

    4. Mortgage and bills in the name of the tax payer sent to PPR address, registered to vote using the PPR address, post sent to PPR address, etc
  • Saltpot
    Saltpot Registered Posts: 11 Regular contributor ⭐ ? ⭐
    Thanks Reader
    The actual scenario is the property was purchased for a retired close relative who lived in the property for 12 years paying no rent. The owner moved into the property to provide care to the relative who would accept no help from any other source! This meant that the owner and his wife ended up residing at the property which included preparing meals and sleeping overnight as well as caring for the relative who was becoming increasingly forgetful. Thus there were good medical reasons for the residency but the owner did not notify HMRC as the relative died some 6 months later. The residency ended when the property suffered a burst pipe and was flooded beyond habitation. Due to the death of the relative it was emotionally impossible to move back into the property after it had been restored/repaired and was sold within 10 days of the restoration work being completed. The owner has now realised a capital gain but is it likely that HMRC would allow the residency to be classed as PPR? How would these details affect your advice?
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