How often do you to stay at a place for it to be your Principal Primary Residence

C

Cityliving

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Hey There,

A friend has asked me to check this out:

If you have a property and its your PPR but you spend lots of time at a partners place or at your family home, staying at houses after parties etc or on hols is it ok to still rent a room in your place? If you dont rent out your bedroom and if only rent one room for a very modest and well within the tax limit band is that ok?

How do you determine PPR?
 
Your PPR is the property in which you normally reside. If you are actually living most of the time elsewhere other than the property that you own then the former is your PPR. Sounds to me like this person may actually really be living with their partner or at home and not in the property that they own in which case there could be various tax and related issues to be dealt with (including retrospectively). They should get professional advice in my opinion.
 
Well he said that they he spend more days then not there. He travels to London a lot on business and stays in hotels there paid for by the company and then he spends time at his girlfriends place when he`s back. I would have thought more than half a year at a place would make it your PPR?
 
There is no hard and fast rule. If he is in doubt then he probably needs professional advice/clarification. If he is wrong and it does not meet Revenue's criteria for being classed as his PPR then he could have some significant tax liabilities (e.g. liability for stamp duty clawback/payment on the original purchase since the property is rented out, inability to claim owner occupier mortgage interest relief on the mortgage, liability for CGT on any eventual resale gain, responsibility to register with PRTB, liability for income tax on rental income etc. etc.)
 
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