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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4428
Experience:  FCCA FCMA CGMA ACIS
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I am a school master who owns a single property jointly with

Customer Question

I am a school master who owns a single property jointly with my wife (in a 10:90 ratio with her owning the 90%). My current school role requires me to live in School tied accommodation. This is not seen by HMRC as a taxable benefit because my role involves management of boarding pupils.
Since taking on the role (in 2012) we have resided in the tied accommodation and have let out our property to tenants. Before that we resided fulltime in the property (from 2009-2012).
We are considering whether to sell the property and are concerned as to whether the fact that the property has been let for a period creates a capital gains tax liability. If so we might consider not selling. Can you advise?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question.

Do have a look at HMRC guidance notes CG64555. There you will see that if you are required to reside in job related accommodation by your employer, own a house and intend to resume normal residence there in due course, your Private Residence Relief (PRR) extends to cover the period of occupation of job related accommodation. There should be no Capital Gains Tax (CGT) liability if you sell your own residence.

This exemption does not apply if you are a Director of any company which provides such accommodation. However there are exemptions even to this caveat as you will see as you read the notice.

I do hope I have put your mind at rest on this little problem. I could expand further into CGT, but think that there is no need in this case following the tenor of your query. If you do need more information please do not hesitate to follow up my response.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.