PTC - PPR rules

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, I wondered if anybody had a simple rule for calculating Principle Primary Residence...<BR>This is the 2nd time I will be sitting this exam and while it didn't come up in the last paper it's the area I'm most likely to fail on...<BR>I know all the obvious rules like any time the property is actually lived in, working abroad. etc. but can't calculate the actual PPR to reduce CGT to save my life...<BR>Help please!!!!!!<BR>Laura

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC - PPR rules

    If you understand the rules for exempt/chargeable re. PPR, then the application is simple. Calculate the chargeable amount, net of cost, additions and indexation, then apply the PPR fraction, then,if applicable, the letting exemption. This leaves you with the gain before taper, so, apply taper, remembering the bit about assets purchased between 18.3.98 and 5.4.98, then take off the annual exemption, leaving the gain chargeable.<BR><BR>What's confusing about that?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC - PPR rules

    I think the only way you can learn this is by rote learning the exempt/chargeable rules and finding as many practice examples as you can. There is no other way as nothing is common sense!! By the way, the exam that I passed was the one that had that question in and, in my class, no one got the same answer as anybody else! I think as long as you have the right idea, you are not going to lose loads of marks for a small mistake. Getting the exemption part right is only a small part of it.<BR><BR>Good luck<BR>Annette

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