Principal Private Residence


I am struggling to remember the rules for working out the periods of deemed occupation, and the working for the chargeable gain.
I know that for the exempt gain we use
Total gain x period of occupation/total period of ownership.
Any help appreciated thanks.


  • Bertie
    Bertie Registered Posts: 376
    Just a quick reply as I'm quite busy.

    Proceeds from sale A
    Less costs (B)

    Gain = A - B = C

    Gain C
    Less PPR = (D)

    Chargeable gain = C - (D)

    PPR =

    i) Last 18 months ownership

    ii) Upto 3 years any reason

    iii) Any period spent working overseas due to employment

    iv) 4 years working in the UK.

    So, Gain x Deemed / Total = PPR relief.

    (Deemed and total are counted in months)


    Conditions ii/iii/iv need to be preceded and followed by actual occupation.

    Also note

    iii/iv Do not need to satisfy the above condition if the person is required by their employer to work elsewhere immediately.

  • jodyewhite
    jodyewhite AAT Student Posts: 35
    Many thanks Bertie for your help.
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