PPR and date it commences on new build in garden

by Readers Question

10:13 AM, 12th April 2016
About 3 years ago

PPR and date it commences on new build in garden

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PPR and date it commences on new build in garden

I am a little uncertain of the how PPR election works. I built a new house in the garden of a property I own and rent out.CGT in garden

The new house had building control sign off on the 23rd May 2013 , but the sustainable code sign off was not completed until 1st October 2014 . ( I am informed we could not sell without the sustainable code sign off)

From a CGT perspective when does the clock start ticking 23rd May 2013 or 1 October 2014?

All the bills for the property are in my name and we ( my wife and I) have spent short periods living there whilst having work done on our other house. Subsequently my daughter has lived in the new house for the last year, she is on the minimum wage and did not want to live with us and could not really afford to live anywhere else.

We had hoped to down size and live in the new house and we had our larger house on the market from October 2012 to March 2014 had 30 viewings and no reasonable offer.( Also our son returned from university to live with us ).

Are we too late to make a PPR claim on the new house as we wish to sell it ?( as the realty is our children will be living with us for some time to come and the new house although perfect for the 2 of us is too small to have adult children living )

Many thanks

Mike



Comments

Neil Patterson

10:17 AM, 12th April 2016
About 3 years ago

Hi Mike,

From our article under the tax tab >> http://www.property118.com/capital-gains-tax-relief-on-a-property-you-have-lived-in/

It is important to note that PPR relief claims are often investigated by HMRC. For this reason it is imperative to be able to prove, beyond any shadow of doubt, that the property was indeed your Principal Private Residence. Examples of how this can be achieved are Council Tax records, bank statements, voters roll, utility bills, doctors and dentists records etc. The more evidence the better of course.

Michael Wiltshire

21:13 PM, 14th April 2016
About 3 years ago

Reply to the comment left by "Neil Patterson" at "12/04/2016 - 10:17":

Neil, thanks for your comment. I have read the article and am still uncertain as to the earliest possible date when the new build property is recognised by the tax authorities as existing, would it be the date that building control sign off was achieved or the date when compliance with the sustainable code was achieved, the property could not in theory happen until the sustainable code compliance sign off was achieved ? The property was not occupied until after both of these dates due a leak emerging in the roof.

Neil Patterson

9:10 AM, 15th April 2016
About 3 years ago

Hi Michael,

I am afraid I don't know unless another reader does. I would try asking HMRC as I may have been lucky in the past, but always found them helpful or your accountant.


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