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Occupied - but not ‘lived in’!

Shared from Tax Insider: Occupied - but not ‘lived in’!
By Mark McLaughlin, June 2022

Mark McLaughlin warns that occupation by a house owner will not necessarily be enough for a private residence relief claim on its disposal. 

When considering the availability of principal private residence (PPR) relief for capital gains tax purposes, there is an important distinction between occupying a dwelling and residing in it. 

PPR relief applies mainly to the disposal of (or an interest in) all or part of a dwelling house which is (or was, during their ownership) the individual’s only or main residence.  

Occupation and residence 

HM Revenue and Customs (HMRC) considers that the individual must have physically occupied the dwelling (although ‘deemed’ periods of occupation are allowed in certain circumstances); intention to occupy is not enough (see HMRC’s Capital Gains manual at CG64465). Furthermore, the property must be occupied as

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