PRR

Question 1

Introduction

When Are Taxpayers Entitled to PRR?

Answer 1

On Any Periods of Actual Occupation in Their Main Home.

Question 2

Private Residence

What is A ‘Permitted Area’ of Land?

(For PRR Purposes)

Answer 2

Half a Hectare.

HMRC Permit Larger Areas if Required For ‘Reasonable Enjoyment’.

Question 3

Calculation of The Relief

What Period of Ownership is Always ‘Deemed Occupation’?

Answer 3

The Last 9 Months.

(The Property Must Have Been Occupied Previously)

Question 4

Calculation of The Relief

What Can 4 Years of Deemed Occupation be Given on?

Answer 4

Periods Working Away From Home.

(Incl. Employment & Self-Employment)

Question 5

Letting Relief

When is Letting Relief Available?

Answer 5

On Shared Occupation of a Property.

(e.g., Shared Utilities & Areas)

Question 6

Letting Relief

Letting Relief is the Lower of:

Answer 6

• The Gain Attributable to Letting;
• The PRR; or
• £40,000.

Question 7

More Than One Residence

Taxpayers Can Elect to Nominate a Main Residence, Provided:

Answer 7

It’s Made Within 2 Years From The Date Both Properties Were Owned (& Resided in).

Question 8

Spouses

Spouses Must Elect to Have:

Answer 8

A Main Residence Between Them.

(Provided They Live Together)