CH23 PRR - Further Aspects

Question 1

Letting Reliefs

When is letting relief available?

Answer 1

If part of the residence has been let out as residential accomodation whilst part of the property is still occupied as the main residence.

Question 2

Letting Relief

The letting relief is the lowest of: ?

Answer 2

• the gain attributable to the letting;
• the PRR;
• £40,000.

Question 3

Rent-a-room Scheme

What is the impact on PRR if part of a taxpayer’s home is let out under the rent-a-room scheme?

Answer 3

This will not restrict PRR.

Question 4

More Than One Residence

What may a taxpayer do if they have more than one residence available to them to use?

Answer 4

They may nominate which is to be their main residence by electing within two years of occupying the second property as a residence.

The nomination can be varied at any time.

Question 5

Spouses

Can spouses have more than one main residence between them?

Answer 5

No. Spouses can only have one main residence between them.

PRR is available on gains from deferred sale agreements entered into on divorce in respect of the marital home.