Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
Hello. I was wondering if anyone knew whether PPR Relief still applies against CGT even after you have become non-UK Tax Resident, where the PPR Relief relates to the period when you were still UK Tax resident? Can you use PPR Relief in conjunction with the rule that allows non-UK tax residents to only be subject to CGT in respect of property from 6 April 2015?
Say for example scenario (1): you bought a home in 2010 and lived in it from 2010 to 5 April 2015 and then rented it out from 6 April 2015 until you sold it in 5 April 2020. Say you became non-UK resident from 2018 onwards. Would you pay CGT on the capital increase for 5 years (2015-2020) or would you be able to claim PPR Relief of 18 months after you moved out (so, in effect, you only pay capital gains for 3.5 years)?
What if say scenario (2): you bought the house in 2010 and rented it out from Day 1, but then lived in it for 1 year from 6 April 2015, and then sold it in 5 April 2020 (having become non-UK tax resident in 2018). Would you pay CGT on the capital increase from 2015-2020 (i.e. 5 years), or could you also claim PPR Relief of 2.5 years (i.e. the year you lived in it from 6 April 2015 and then the 18 months afterwards)?, so that you only paid CGT on the remaining 2.5 years of Capital Gains?
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