Rebasing March 1982

[Deleted User]

House being sold next month bought in 1979. Seller has been in nursing home for last 24 months before which it was PPR. 

I believe that the normal 9 months extension to PPR relief will be increased to 24 in this case - not 36 months?

There will be no CGT due to PPR and March 1982 value will be used but, for the purposes of the calculation, am I correct in calculating period of ownership and, thus, PPR relief from date of acquisition i.e. not 31st March 1982. 

I  simply just cannot remember!

edit: I have established that the PPR relief is extended from 9 to 36 months.

Jeremy535897

Main residence relief is calculated using 31 March 1982 as the acquisition date where the home was acquired before that date. Section 223(7) TCGA1992:

"(7)In this section “period of ownership”—

(a)does not include any period before 31 March 1982, and..."

If the conditions in section 225E TCGA 1992 are met, the extension is 36 months as you say.

[Deleted User]

Jeremy535897 said:

Main residence relief is calculated using 31 March 1982 as the acquisition date where the home was acquired before that date. Section 223(7) TCGA1992:

"(7)In this section “period of ownership”—

(a)does not include any period before 31 March 1982, and..."

If the conditions in section 225E TCGA 1992 are met, the extension is 36 months as you say.

Excellent - had an odd feeling that you would know.

Jeremy535897

[Deleted User] said:

Jeremy535897 said:

Main residence relief is calculated using 31 March 1982 as the acquisition date where the home was acquired before that date. Section 223(7) TCGA1992:

"(7)In this section “period of ownership”—

(a)does not include any period before 31 March 1982, and..."

If the conditions in section 225E TCGA 1992 are met, the extension is 36 months as you say.

Excellent - had an odd feeling that you would know.

I had to look it up to be sure!

jimmo

Not re4levant to your case but the only time you can look beyond 31/3/1982 is when considering the final period exemptiom.
CG64943 - Private residence relief: ownership period: final period exemption - HMRC internal manual - GOV.UK (www.gov.uk)

Jeremy535897

Not come across this before, but as it only appears to be relevant for a property that ceased to be a main residence prior to 31 March 1982, I guess it's pretty rare. Interesting though.

jimmo

From memory it only arose once in my working days and, for the taxpayer, 36 months relief was worth claiming in the early days of rebasing. Perhaps it should have been buried with the kink test.

[Deleted User]

jimmo said:

From memory it only arose once in my working days and, for the taxpayer, 36 months relief was worth claiming in the early days of rebasing. Perhaps it should have been buried with the kink test.

Thanks jimmo - thought you would get interested. While aware of the the extension of PPR to 36 months I couldn’t remember whether period of ownership commenced effectively at March 1982. 

There is no possibility of any CGT - main residence from March 1979 until November 2020 when the lady moved to a nursing home. But you do have to put the workings in the additional information box!