Capital Gains Tax advice
Jan 17th 2020, 12:50 pm
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Capital Gains Tax advice
Looking for some advice about selling my UK flat. I brought my flat on my own in July 2009 and then moved to Canada in Feb 2010 as my common-law spouse got a 12 month contract. We moved back to the UK in August 2019 as MIL was sick.
We want to move back to Toronto in August /September2020 so kids can go back to school.
Ive been told that I will be able to claim the entire duration of my stay in Canada as deemed occupation for PPR relief so long as I then stayed in my flat for at least 12 months to avoid abuse of rules.
Does anyone have any knowledge of this or can point me towards someone that can help?
Thanks
The legislation is very specific as to which periods of absence can count as deemed occupation. There are three periods of absence that will qualify.
1. Where the owner is abroad by reason of his employment, that period of absence can be treated as a period of deemed occupation. This period is unlimited. TCGA 1992, s.223(3)(b)
2. Where the owner was absent from the property due to working elsewhere – either as an employee or as a self-employed trader – that period of absence will also qualify as deemed occupation. Here the period of deemed occupation is limited to a maximum of four years. TCGA 1992, s.223(3)(c)
3. Finally, any period of absence up to a maximum of three years will qualify as a period of deemed occupation. TCGA 1992, s.223(3)(a)
These three periods of deemed occupation can apply cumulatively. This means that a longer period of absence may all qualify as deemed occupation, as certain periods can be added together. A period of absence is treated as a period of deemed occupation if the individual is living with a spouse/civil partner who meets one of the necessary conditions relating to work or employment.
We want to move back to Toronto in August /September2020 so kids can go back to school.
Ive been told that I will be able to claim the entire duration of my stay in Canada as deemed occupation for PPR relief so long as I then stayed in my flat for at least 12 months to avoid abuse of rules.
Does anyone have any knowledge of this or can point me towards someone that can help?
Thanks
The legislation is very specific as to which periods of absence can count as deemed occupation. There are three periods of absence that will qualify.
1. Where the owner is abroad by reason of his employment, that period of absence can be treated as a period of deemed occupation. This period is unlimited. TCGA 1992, s.223(3)(b)
2. Where the owner was absent from the property due to working elsewhere – either as an employee or as a self-employed trader – that period of absence will also qualify as deemed occupation. Here the period of deemed occupation is limited to a maximum of four years. TCGA 1992, s.223(3)(c)
3. Finally, any period of absence up to a maximum of three years will qualify as a period of deemed occupation. TCGA 1992, s.223(3)(a)
These three periods of deemed occupation can apply cumulatively. This means that a longer period of absence may all qualify as deemed occupation, as certain periods can be added together. A period of absence is treated as a period of deemed occupation if the individual is living with a spouse/civil partner who meets one of the necessary conditions relating to work or employment.
