Ptc

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SammyD
SammyD Registered Posts: 3 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Hi all,
I noticed that although we have PTC exam tomorrow, there aren't any threads up as yet.

I'm not sure if i'm the only one struggling with PPR (Principal Private Residences).

Does anyone have any key ideas to remember when calculating the relief?

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  • JennyS
    JennyS Registered Posts: 5 New contributor 🐸
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    Ptc

    I'm having same problem with Principle Private Residence..although I do remember that the last 3 years of ownership are deemed as occupied even if the person was not living there..hope this helps!
  • pensilnek
    pensilnek Registered Posts: 19 New contributor 🐸
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    Hi there,

    I was going over this today so I'll try to explain without confusing both of us from the top of my head.

    If the property has been a PPR sometime during the ownership:-

    1. calculate the gain before taper relief as per usual
    2. work out how long the property was being used as a PPR (plus if the property has been used as a PPR at any time, the last 3 years are always counted)
    3. divide this by the total length of ownership to give the PPR period as a percentge.
    4. multiply the gain before taper relief by (1 minus the percentage worked out above) to give you the chargeable gain before taper relief.
    5.apply taper relief as usual.

    Hope that helps, if not totally ignore what ive said.

    Good luck with the exam
  • SammyD
    SammyD Registered Posts: 3 New contributor 🐸
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    PPR - Ptc

    Thank you,

    It gives me a little solace that i'm not alone!

    I've found June 2004 past paper, a good one to practice on, it's got a really messy PPR question. Just going through it now.

    So Last 3 years and I remember 3 years for any reason is deemed occupied. I'm trying to think of a jingle to help me - maybe: 3, 3, 4 and more. ( 3year for any reason, Last 3 years, 4 years working in the uk and any period working overseas) - Open to suggestions :-)

    So, I would work out the indexed gain first, then do the PPR exemption which is:

    mths occupied/ mths ownership x indexed gain

    Then apply taper relief.

    Thanks, that was really helpful.
  • Andrewh26
    Andrewh26 Registered Posts: 69 Regular contributor ⭐
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    I have barely looked at this, could be a mistake, as it might come up, but probably won't. I'm concentrating on the shares disposals
  • Nich
    Nich Registered Posts: 49 Regular contributor ⭐
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    I have barely touched on it but just have a feeling it will come up. As far as i can see, it hasn't really come up since June 2004, so need to get revising on it!
  • Andrewh26
    Andrewh26 Registered Posts: 69 Regular contributor ⭐
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    I'm just taking a look at it now. so whats the calculation to get the exempt amount? something the exempt months divided by total months x something, or other way round. anyone know?
  • SammyD
    SammyD Registered Posts: 3 New contributor 🐸
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    Ppr

    Hi Andrewh26,

    just finishing up some last minute revision.

    A way of remembering it is poor and poo! - por (period of residence)/ poo (period of ownership) x indexed gain.

    Wish you all the best for the exam in the morning one and all!

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