New queries, issue 4616

Occupational hazard

Eligibility for capital gains tax exemption on main residence ‘not’ occupied.

I have a client who has a property that was occupied originally as a main residence. Subsequently she was seconded abroad for 11 years and let out the property. On her return at the end of the assignment she lived in rented accommodation in the UK because her own house was still occupied by a tenant but intended to reoccupy when the lease finished.

Unfortunately circumstances dictated that the property was sold at the end of the lease before she had a chance to reoccupy it.

Although letting relief is available and the last 18 months of ownership are exempt under the deemed occupation rules there is still a significant gain that would have been exempt had she reoccupied the property.

TCGA 1992 s 223(3B) removes the need for...