Commentary

C3.1715 PPR relief where there is an intention to realise a gain

Capital gains tax
Capital gains tax | Commentary

C3.1715 PPR relief where there is an intention to realise a gain

Capital gains tax | Commentary

C3.1715 PPR relief where there is an intention to realise a gain

PPR relief is not available if the property was purchased with the intention of realising a gain from it rather than residing in it1. As PPR relief is not available in such circumstances, then the additional lettings relief also become unavailable. This applies even if the intention is only partly to realise a gain. It also applies to the purchase of an interest in the property, even if other conditions for PPR relief are satisfied, for example that the house is:

  1.  

    •     an only or main residence of the owner (see C3.1704), or

  2.  

    •     an only or main residence of the owner of a beneficiary under a settlement (see C3.1708), or

  3.  

    •     the sole residence of a qualifying dependent relative (see C3.1713)

In Jones2, the taxpayer unsuccessfully contended that private residence exemption did not apply, so that his losses on its disposal would be allowable. He argued that he bought the property partly for the purposes of realising a gain. However, the Commissioner found that there was no evidence to support this, and accordingly dismissed his appeal.

Incurring capital expenditure with the intention to realise a

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