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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I purchased my family home (joint tenants 50:50 with my wife)

Customer Question

I purchased my family home (joint tenants 50:50 with my wife) on 27th March 2001 , My employer moved me to work in Hong Kong in 2003 and I have been there ever since , we plan to return to the UK in Aug 2016 , we will probably live in the house for a year and then sell in Aug 2017 and downsize , Purchase cost was 420k sell price likely to be 750k a gain of 330k , the house has been let out for the entire period while we are overseas. having rad the tax ;legislation it seems an absence working overseas is allowable for PPR relief , however I am unsure what impact the letting has on the potential gain, and if there is a taxable gain how much is it likely to be and what can i do legally to mitigate/reduce it - regards
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Take a look at the pages from CG65030 starting here for the conditions for an absence to be a qualifying absence for the purposes of principle private residence relief. In particular, see the last paragraph of CG65050 here which states that the fact that the property is let during a qualifying period of absence does not negate the relief.

As you intend to move back into the property when you return to the UK before you sell it, it would appear that you will qualify for principle private residence relief for the absence abroad but you should read the conditions I have given you a link to. You also should not have another property on which you may be entitled to relief.

I hope this helps but let me know if you have any further questions.
TonyTax and 2 other Tax Specialists are ready to help you
Expert:  TonyTax replied 2 years ago.
Thanks for accepting my answer.
Customer: replied 2 years ago.

Tony , I just asked a new question about selling my house in Hong Kong , i didn't realise i could direct it to you , i think it is out there waiting for someone to respond , I was very happy with your detailed answer last time it would be great if you could go and try and be the one to answer it

Expert:  TonyTax replied 2 years ago.
I've answered your second question here.