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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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are you liable gains tax if it is your sole property

Customer Question

are you liable gains tax if it is your sole property but is not your place of residence
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
and thank you me to assist you.
You can claim what HM Revenue & Customs (HMRC) calls "private residence relief" if the property is your residence but if it is not then yes, you would be subject to Capital Gains Tax unfortunately.
Expert:  bigduckontax replied 2 years ago.
The legislation states that Private Residence Relief is available to your 'Sole or main domestic residence.' Thus if you own but one of these then the entitlement exists and relieves any gain on sale at 100%.In the mid 70s the Inland Revenue as it then was managed to persuade the Ministry of Defence to issue a Defence Council Instruction to the effect that service personnel living in Government Quarters had their quarter which they did not even own as their 'sole or main etc.' This caused uproar and the Instruction had to be quickly withdrawn following massive protests and the Inland Revenue were left with considerable egg on its face.