Tax - PPR

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Hi, Does anyone know if we will be required to calculate a principle private residence in the exam? I though my lecturer said we might get asked to explain it but probably not to actually calculate it?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Tax - PPR

    I think if anyone knows the contents of the exam (legitimately or otherwise) they're not likely to be broadcasting it around here :)

    Trying to second guess the examiner as to what's in the paper is not that good an idea. My tutor reckons that as PPR hasn't been examined for a while there's a fair chance of a question on it. Ultimately though, who knows? Unfortunately, the only thing to do is learn it all!

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Tax - PPR

    I had a PPR question in my exam when I took it in 2004 and we did have to calculate it.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Tax - PPR

    Ahhh now that was a nasty one.

    Apparently there was a lot of fuss made about that question in feedback to the AAT about the exam. I don't expect they'll set anything quite as fiendish as that again, but it's as well to be prepared.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Tax - PPR

    Tell me about it!!

    When we were discussing things after none of us had any answers the same. With PPR I guess that's quite common!

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Tax - PPR

    i have just done the ppr question from that exam paper today as a practice run - suffice to say - i got it wrong.
    we had done this quesion in class a couple of weeks ago but i couldnt get my head round it - hence the wrong answer today.
    but going over the answer i finally understood it

    basically total ownership months less exempt months(occupational) = chargeable months (living elsewhere permanantly)

    occupational is regarded as all months actually occupied, plus any time living away temporarily.

    automatic exempt bits are:
    the last 36 months of ownership, and another 36 months for whatever reason providing there is actual occupation immediatley before and after the other 36 months.

    oh, and dont forget to do the indexing first then use that figure as the whole gain, not the sale price of the house

    Please correct me if im wrong - but that is my understanding of it.

    hope it helps! good luck!

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