Personal Tax: Practice Assessment 2 Question 1:9

KAF
KAF Registered Posts: 32
Hi,

Could somebody assist on the question about the house. I'm a bit confused as to why its 0. I thought the calculation would be PPR so 395,000 - 120,000 = 275000 x deemed residence / total ownership period. Any help would be appreciated.



Comments

  • douglasstroud
    douglasstroud Registered Posts: 295 Dedicated contributor 🦉
    It will be nil because the house has always been his main residence apart from the last 6 months which will still qualify for relief because the last 9 months (previously 18) under these circumstances count
  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    The equation you've used is slightly wrong.

    Capital gain * (1 - deemed residence / total ownership) is what you wanted or

    Capital gain * (deemed non resident / total ownership)

    Combine that with what douglas said and the deemed residence = total ownership.

    Capital gain * 0 = 0
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22
Privacy Policy