Lettings Relief Query

Jeremy535897

goodadvice12 said:

Thanks again.
But even if I assumed that say I had occupied 70% of the flat, and the flat share tenant/lodger 30%, presumably that would just alter the proportion of the reliefs?
So PRR would be 70% x 5/10x80 for those first five years - giving 28k
leaving my lettings element as 12k. 
so the final answer remains the same.  In which case I had better report the percentages I declared when i was submitting rental income figures in those years!
Thanks again

That's why I said it may make no difference.

oldbikebloke

goodadvice12 said:

Sounds like JIMMO was a helpful chap - will look out for him!

Jimmo is devastatingly right when he posts, but (sadly) now only posts when something really interests him 
Jeremy is the new kid on the block and has the crown as top tax dog  

jimmo

It may seem strange to some but I don't see the point in posting just to say I agree with what somebody else has already said. Also it is now more than 14 years since I retired so my knowledge is really dated.

In this case I would have thought that the OP could claim full PRR for the period of his residence and could ignore the presence of a lodger.

CG64702 - Capital Gains Manual - HMRC internal manual - GOV.UK (www.gov.uk)

 

Even if that didn't apply the question you should ask yourself is which part of the property did the tenant have exclusive use of? Any shared rooms such as lounge, kitchen and bathroom were still occupied by you as your main residence despite the fact that they were shared with your lodger or tenant.

Jeremy535897

jimmo said:

It may seem strange to some but I don't see the point in posting just to say I agree with what somebody else has already said. Also it is now more than 14 years since I retired so my knowledge is really dated.

In this case I would have thought that the OP could claim full PRR for the period of his residence and could ignore the presence of a lodger.

CG64702 - Capital Gains Manual - HMRC internal manual - GOV.UK (www.gov.uk)

 

Even if that didn't apply the question you should ask yourself is which part of the property did the tenant have exclusive use of? Any shared rooms such as lounge, kitchen and bathroom were still occupied by you as your main residence despite the fact that they were shared with your lodger or tenant.

I think the lodger did have exclusive use of one bedroom, which is why I suggested that the 50% restriction is excessive, but didn't suggest full main residence relief. Fortunately, it doesn't seem to make any difference in these circumstances. I recall OP saying something about 50% being a figure he used for income tax purposes (possibly the percentage of some expenses claimed), but as jimmo has pointed out, the CGT rule looks at exclusive use, so one would not necessarily expect parity between income tax and CGT.

My tax knowledge is somewhat patchy, but this forum helps me keep it more up to date than would otherwise be the case. I worked for a perfectionist in my far off youth who used to say disparagingly of people "Oh they know no tax" when they knew far more than 95% of tax advisers. A good place to learn.

goodadvice12

Thanks to all of you for your input. It has been very helpful.