Personal Tax Paper June 04 Paper question 2.1

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
I am really confused by this question and the answer that is given. It is based on Private Personal residence and the person in questions occupation. I arrive at 218 total months and 182 exempt as the last 36 months are when the man is living abroad is follwed by 8 months of living back at home. The paper comes to 44 months being chargable. Has anyone done this question and can help and explain how the answer is 44 months ? Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Personal Tax Paper June 04 Paper question 2.1

    Hi<BR><BR>I tried this paper the other day and it totally confused me too ! Until my (non-accountant !) fiance worked it out !<BR><BR>If I remember rightly (sorry at work so don't have paper to hand) then the last 3 years of ownership count as PPR regardless of whether it was or not. Also, and absence of 3 years for whatever reason also counts PPR and it counts as PPR when you are working abroad.<BR><BR>I think from memory that the chargeable months just cover the period when he's in Portugal following retirement.............<BR><BR>I'll have a look at my answer tonight and get back to you tomorrow if I haven't made any sense !<BR><BR>:-)<BR><BR>Nicky
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Personal Tax Paper June 04 Paper question 2.1

    Hi No I am still not clear. Could you break down the answer. Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Personal Tax Paper June 04 Paper question 2.1

    1.10.85- 31.1.88 PPR actual residence 28 months<BR>1.2.98-31.1.90 Working abroad deemed PPR 24 months<BR>1.2.90-31.3.94 PPR actual residence 50 months<BR>1.4.94-30.11.00 80 months living abroad, preceded and followed by actual residence, therefore deemed PPR for 36 months. This leaves 44 months non residence<BR>1.12.00-30.11.03 Last 36 months PPR<BR><BR>The difficult part is that the period in Portugal overlaps the last 36 months and is also entitled to relief under the 3 year for any purpose rule.<BR><BR>It's good fun, isn't it. I love tax problems!

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