Commentary

C3.1706 PPR relief where there is job-related accommodation

Capital gains tax
Capital gains tax | Commentary

C3.1706 PPR relief where there is job-related accommodation

Capital gains tax | Commentary

C3.1706 PPR relief where there is job-related accommodation

It may be possible for an individual to occupy job-related accommodation (as defined below) and at the same time own another residence which is intended to be occupied as an only or main residence in due course. The rules regarding PPR relief are modified in such circumstances1.

The occupation of the job-related accommodation is treated for the purpose of the PPR exemption as though it were occupation by the individual of the dwelling house which they own. This is a long-standing rule for employees in relation to any period after 31 July 1978, and was also extended to the self employed from 5 April 1983.

The question of the individual's intention to occupy the owned residence in due course, is one of fact. The subsequent actual occupation of the residence constitutes cogent evidence of a previous intention. Nevertheless, provided that an intention can be demonstrated as existing during a period, that period may be treated, for the purpose of exemption, as a period of occupation of the residence owned, even if the individual disposes of the residence without actually occupying it (see C3.1704 for case law on intention).

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