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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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My wife job requires her/is to live a job related accommodation

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My wife job requires her/is to live a job related accommodation as she is a Residential Deputy Head at a special needs school and has been since the early 1990's. We owned a house from 2000 up to October last year and sold it for a gain. We always considered this to be the house we would live in if my wife ever changed jobs or we retired but as we are retiring soon we thought we may move on.
From what we can, reading Help Sheet 283 and CG64555 we should get private residence relief for the whole period of ownership but we did not know we had to nominate a property within 2 years while we were living in job related accommodation. No one told us. However, CG64500 ESC/D21 seems to indicate that this time can be extended if the individual did not know that nomination was necessary.
I hope we have interpreted this right otherwise we will have a large demand for CGT for a silly omission that were not aware of.
What do you think?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloYes ESC/D21 can extend the 2 year Time Limit where the individual did not realise that (say) a rented flat counted as a residence for CGT purposes.If a person has more than one residence, relief is given on the property considered to be the main residence.CG64500 in HMRC’s Capital Gains Manual, HMRC confirms that any property can be a residence even if the person does not own it.ESC D21 provides an extended time limit to make an election where a person is not aware of the need to make one and he only has a negligible interest in one property (such as the job accommodation).If a property is acquired with the intention of using it as a residence and is later sold, perhaps because the owners changed their minds or faced financial difficulties, without ever having occupied it then no PPR relief is due. The only exception to this rule is where a person living in job related accommodation acquires a property that he intends to use as a residence [ s222]. Elections and variations of elections under s222 do not require any specific forms and so can be made by letter to the relevant tax office.
Customer: replied 1 year ago.
Thank you. Can I assume that as we live in job related accommodation then PPR relief will be fully allowed on the sold property even though a nomination is not made within 2 years? I think thats what you have said? Happy to pay the bill if you can reply.
Expert:  TaxRobin replied 1 year ago.
Yes, you can look to PPR relief and a letter to HMRC explaining your situation should avoid any future problems.
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