Partial PPR relief on CGT

B

Bill90.

Registered User
Messages
59
Hi,

I will be talking to my accountant about this but I like to educate myself as much as possible on thing's beforehand too. I'll try to keep this as simple as possible.

I was gifted a partially build property from my father in 2012, value on transfer 60k

I finished it, connected power and moved in in 2016. Cost me 50k

I lived in it for a year and rented it out for the following 3 years before selling in 2020 for 200k.

Period of ownership is 8 years
Period of habitable ownership 4 years
I lived in it for 1 year (+final 12 months)

So my question is am I only entitled to PPR relief of 2 of the 8 years. Or 2 of the 4 years as it was my project for the first 4 years?.

I have everything written down to the day for my accountant but to keep it simple I've done the above in years.

The reason I asked is, if I done a self build today and it took 2 year's to build form the time I bought the site, then lived in it for 6 year's and sold it I would have thought you'd get full ppr relief?.

Sorry about the long explanation, just trying to cover everything.

Thanks in advance for any advice.
 
Don't over complicate this.

The period of ownership is 8 years, and the period of occupation / deemed occupation as a PPR is 2 years.

Three quarters of the gain will be liable to CGT, that's quite clear.

The trickier part will be correctly calculating the gain... ;)
 
torblednam said:
Don't over complicate this.

The period of ownership is 8 years, and the period of occupation / deemed occupation as a PPR is 2 years.

Three quarters of the gain will be liable to CGT, that's quite clear.

The trickier part will be correctly calculating the gain... ;)
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Can he claim a portion of the 50k he put into the house, I think he may be able.
 
Assuming has receipts the cost for CGT basis would be transfer value plus 50k i would assume, so gain 90k less legal, selling costs and probably professional fees on the initial transfer
 
cloughy said:
Assuming has receipts the cost for CGT basis would be transfer value plus 50k i would assume, so gain 90k less legal, selling costs and probably professional fees on the initial transfer
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Which raises another question, the transfer value is still probably still deducted from his life time amount from his father and increases his CAT liability if the inheritance is over whatever that figure.......am I right in saying that?
 
The value for CAT is the vaule when he inherited - any gains after that are Capital Gains
 
torblednam said:
Don't over complicate this.

The period of ownership is 8 years, and the period of occupation / deemed occupation as a PPR is 2 years.

Three quarters of the gain will be liable to CGT, that's quite clear.

The trickier part will be correctly calculating the gain... ;)
Click to expand...
Thanks for that. Ya you're right. I think i was trying to over complicate it to justify a lower calculation . I have receipts for the 50k, if I was to estimate total works at 60k which is possibly the actual figure would I have to prove the final 10k?.
 
Bill90. said:
Thanks for that. Ya you're right. I think i was trying to over complicate it to justify a lower calculation . I have receipts for the 50k, if I was to estimate total works at 60k which is possibly the actual figure would I have to prove the final 10k?.
Click to expand...
Yes you should have receipts for everything and pushing up the value without them is not legal.
 
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