CGT Private Residence Relief

Question 1

How do you calculate Private Residence Relief for CGT?

Answer 1

gain x (period of occupation / period of ownership)

This will be 100% if they have lived there during whole coarse of ownership

Question 2

When is deemed occupation used?

Answer 2

1. Last 9 months of ownership
   - ALWAYS if you did live there at SOME point
   - even if you moved out years ago still deemed occupation for last 9 months of owning it
2. Periods Between Actual Occupation
   - any period for any reason up to 3 years
   - unlimited period if working aboard during that time
   - for working elsewhere (self employed or as employee) up to 4 years

Question 3

What to remember for deemed occupation rules?

Answer 3

Rule for period between actual occupation ONLY works if you did return at some point before selling house

Multiple of these can be used together (cumulatively)

Question 4

What is CGT for residential property?

Answer 4

ALWAYS extra 8%

So
- 18% for amount falling in basic rate
- 28% for amount falling in higher rate