Posted overseas with Forces - renting to brother

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82032939#Comment_82032939

To what purpose?

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82032939#Comment_82032939

what did you not understand about "for capital gains tax purposes - the fact OP is occuping job related accommodation does mean they will still get PRR (private residence relief) on that property and so won't face a CGT bill when they sell it"

returning "regularly" is utterly irrelevant
owning a property whilst being required to occupy job related accommodation (SFA in case of military) is the deciding factor

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82033131#Comment_82033131

Some people own a small property near their work and a family home elsewhere. They have the option of deciding which is to be considered by hmrc to be their PPR provided they make that declaration within 2 years. So even though they spend more time at their location near their work, the other property will be accepted by hmrc as their PPR. It’s only if you don’t make the declaration that the PPR is considered on the evidence. This applies to those with work provided accommodation too, see my next post.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/82033131#Comment_82033131

Job-related accommodation

If you live in accommodation that is job-related and you also own a dwelling house that you intend to occupy as your only or main residence, the dwelling house you intend to occupy is treated as actually being occupied by you as a residence during the period in which you intend to occupy it, even if you never actually live there. This means that you may nominate that residence as your only or main residence and get relief on the whole or a part of the gain.

Quoting directly from here, see example 7.

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2023#who-qualifies-for-relief

silvercar

To avoid any CGT. Especially as they want to be able to return regularly, so creating a tenancy is not the way forward.

https://www.gov.uk/government/publications/private-residence-relief-hs283-self-assessment-helpsheet/hs283-private-residence-relief-2023#who-qualifies-for-relief

https://forums.moneysavingexpert.com/discussion/comment/82033038#Comment_82033038

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82033465#Comment_82033465

sorry what point are you making? That is exactly what I said

BTW it is called Private Residence Relief or PRR (the term PPR is no longer used)

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82033467#Comment_82033467

It had already been stated that the OP Woukd not be liable to CGT due to living in work related accommodation.

WIAWSNB

Grecian, what accomodation will you have abroad - I presume you are not buying?

And, if your bro wasn't going to be using your house, what would you do with the house in blighty? Would it be left empty except for your regular return visits?

If no and yes, surely this is a complete no-brainer. Your house remains your main residence in all legal respects, is there for you to use as your home any time you wish, and your bro will live there under the RaR scheme.

That's it. Surely?

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82034335#Comment_82034335

0.2 When you cannot use the Rent-a-Room Scheme

You cannot use the scheme if the accommodation is:

• not part of your main home when you let it
• not furnished
• used as an office or for any business — you can use the scheme if your lodger works in your home in the evening or at weekends or is a student who is provided with study facilities
• in your UK home and is let while you live abroad

https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2025

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/82034613#Comment_82034613

Thanks.

But neither would Grecian be renting his house. So, what can happen with the place? They cannot allow their sibling to live there at all? Or, live there only for free?