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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
On what grounds do you consider your brother not being entitled to PRR. If this is his sole or min domestic residence ie he owns no other houses elsewhere, them PRR will most certainly apply.
Rentals are invariably taxed in country of origin and you would have to seek relief through Double Taxation Treaties or Conventions..
Once you sell your sole or main domestic residence, then PRR will apply then a new PRR entitlement will be created in your rented out property as it will be the only house you own. Not that that will be of much use to you as you do not occupy save for the last 18 months of ownership when you are deemed to be in occupation even if this is not the case.
You will only pay the higher rate of tax if your income moves into the higher tax bracket. You would only get some relief from CGT were you to occupy job related accommodation and then for only 4 years.
Have I covered everything?
There is not, unless, of course, you acquire a new sole or main domestic residence overseas.
By the way, when you first left the UK dod you send a Form P85 to your tax office?
You should do so immediately quoting the date of your original departure. Fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt HMRC will make you non resident and you will find dealing with that Department much easier. Once so registered you may spend up to 90 days in the UK in any one tax year without breaching your non residential status.
Thank you for your support.
when you finally return to Blighty you should advise HMRC by letter,