Gain on house sale. Non UK RESIDENT

thenap80

Hi, 
I worked out the gain using TIME APPORTION METHOD. 
When stipuating the gain, can I take off my PRR first and then call that the gain? 
Or is the PRR separate from the actual written and calculated GAIN. So PRR goes down as a cost instead of deduicting it from the gain to get a lesser amount to call the gain, 

Nomunnofun1

thenap80 said:

Hi, 
I worked out the gain using TIME APPORTION METHOD. 
When stipuating the gain, can I take off my PRR first and then call that the gain? 
Or is the PRR separate from the actual written and calculated GAIN. So PRR goes down as a cost instead of deduicting it from the gain to get a lesser amount to call the gain, 

PRR is a relief. 

a) You work out the gain deducting allowable costs without any reliefs. 

b) You deduct the PPR using time apportionment on a)

This is your gain before annual exemption. 

thenap80

I'm so sorry but then is it the case that:

GAIN = TIME APPOORTION METHOD CALCULATED GAIN minus PRR 

Sorry but thanks so much. I need to get this right!

DRS1

I don't think the PPR relief is an amount.  I think you work out how long the house was your PPR and how long it wasn't (with some fiddly bits at the start and end of your ownership).  So let's say the overall gain is £10K and it was your PPR for 80% of the period of ownership (allowing for the fiddly bits) then you reduce the chargeable gain to £2k - ie £10K - (£10K x 80%).

Nomunnofun1

thenap80 said:

I'm so sorry but then is it the case that:

GAIN = TIME APPOORTION METHOD CALCULATED GAIN minus PRR 

Sorry but thanks so much. I need to get this right!

OK - an example. Sale proceeds £150000. 

Purchase cost £80000. Allowable expenses £8000. 

PPR is 60%. 

Gain before relief £62000.

PPR - 60% of £62000 is £37200.

Chargeable gain before exemption - £24800.

Bookworm105

I don't think either of the above respondents have understood the significance of you referring to non resident time apportionment, that is not what is meant by the PPR % calculation method

this does not directly answer the query of how to apply the PRR deduction, so I suggest waiting and hoping that @Jeremy535897 will respond as he is the CGT expert

Non-resident capital gains tax: what you need to know - Willans

Nomunnofun1

Bookworm105 said:

I don't think either of the above respondents have understood the significance of you referring to non resident time apportionment, that is not what is meant by the PPR % calculation method

this does not directly answer the query of how to apply the PRR deduction, so I suggest waiting and hoping that @Jeremy535897 will respond as he is the CGT expert

Non-resident capital gains tax: what you need to know - Willans

You are correct - I presumed time apportionment with reference to PPR only. 

From (distant) memory, the gain is calculated after claiming all reliefs (PPR) and time apportionment applies thereafter. As you say - others may be more up to speed. 

https://www.litrg.org.uk/savings-property/capital-gains-tax/non-residents-and-capital-gains-tax#3

DRS1

OH so presumably the OP needs to feed his figures into the calculator at the bottom of this page?

Work out your tax if you're a non-resident selling UK property or land - GOV.UK