Help Required with PTC June 04 Paper Please

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi Guys

I was just wondering if anyone had done the Private Residence question on the June 04 past paper.

I calculated that 182 out of 218 months were exempt but the answers on the AAT Website say that its 174 out of 218. This must mean that the final period of 8 months (where the guy moves back to his house after retiring abroad) is not allowed to be Deemed Occupation!

Does anyone know why this is??

Thanks in advance.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help Required with PTC June 04 Paper Please

    I remember struggling with this question.

    To get the 174 months they have deducted the last 8 months of private residence from the 218 months which leaves 210 months. Then from this they have deducted 36 months for the last 3 years exemption. This then leaves 174 months.

    I found it easier to draw a time line for each event and work out the months or years between events, then it was easier to see which parts were exempt and which were not.

    I hope this is helpful and all the best for next week

    :-)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help Required with PTC June 04 Paper Please

    Hi there,
    My undertanding as follows:

    Ownership period
    From 01.07.86 to 01.03-05 , in total 224months;
    occupation period

    01.10.1985 - 31.01.1988 Lived in 28 months
    31.01.1988 - 31.01.1990 Worked abroad 24 months
    31.01.1990 - 01.04.1994 Lived in 50 months
    01.04.1994 - 01.04.2003 absence deem period
    up to 3 years 36months (not108monhts)
    01.04.2003 - 30.11.2003 Lived in 8 months
    As long as the property has at some time been a PRR then the last 3 years of ownership will alwaysbe considered as a period of PRR occupation, but he has acctually alreay lived in for 8 months ,so the last 3year less 8months ,is 28months.
    The total occupation period is
    28+24+50+36+8+28=174
    Hope these can sense to you.
    chaoliss

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help Required with PTC June 04 Paper Please

    Sorry i dont think i explained myself very well!!

    Basically from 1st Oct 85 to 30th Nov 03 is 218 months.

    The period 1st Oct 85 to 1st Apr 94 (102 months) can be ignored as it is covered by private residence or the period of absence is short enough to be exempt.

    This leaves 1st Apr 94 to 30th Nov 03 which is 116 months. The three years exemption for being abroad reduces this by 36 months to give 80 months.

    Then a further reduction is given for private residence relief of 3 years or 36 months leaving 44 months chargeable. (The final 8 months of occupancy is included in this 36 months deduction).

    Take 44 from 218 and you get 174 which is the AAT answer!!

Categories

Privacy Policy