Principal Private Resident Relief on sale of property
Jan-2000: Owner buys the property for £70k. Owner lives at the property as his main residence.
Jan-2012: The property is let out
Dec-2015: The property is sold for £400k
Jan-2004: Owner buys the property for £250k. Second residence only weekend stays.
Jan-2012 to present date: This property2 becomes the owners main residence as the property1 is let out from Jan-2012
Dec-2018: Plan to sell property 2 for estimated £600k.
Principal Private Resident Relief (PPR):
The owner did not make an election on main residence
Can the owner claim PPR on property 1? Please show calculations.
Can the owner claim PPR on property 2 when sold at future date Dec-2018? Please show calculations.
regarding property 1, over the total rental period its a net loss of £500.00. How does this impact LR.
please answer my follow on question
Firstly my apologies for the delay. I am answering your question from a time zone 7 hpurs ahead of GMT and I had gone to bed!
I assume from your query over the loss that LR has extinguised the gain and left GBP 500 unused. Thst is actually not the case and LR would be utilised only so much as to reduce the gain to zero. The rest of that relief is lost.
ok thanks, understood.
we can close this case.