Description
Private Residence Relief is the area of tax legislation that deals with exempting from Capital Gains Tax the proceeds on the partial or complete sale of one's only or main residence.
The rules and HMRC practice in this area can be tricky for the unwary. However, with careful planning they can be combined with other exemptions and reliefs to mitigate or completely avoid capital gains tax liabilities arising. Updated to reflect recent case law and the FA 2006, the book is a complete resource on the subject and provides answers to many problematic issues. It also deals with issues such as second homes; properties abroad and letting to residential tenants.
How it has been updated
The new edition now takes into account:
- Changes about the interaction of CGT private residence relief and holdover relief in Finance Act 2004
- Issues about taper relief for those who use part of their home for business
- The interaction of PPR relief with other reliefs and taxes, especially IHT, which have has been affected by the pre-owned assets rules and there has also been an important case (DOE v Skerritts of Nottingham Ltd) which affects the discussion about caurtilages.
- Answers to problematic issues
The book will help you again and again with useful information and answers to relevant questions, such as:
- How much of the land held with a house can be sold tax-free?
- Is it always impossible to sell part of a large garden, yet remain in occupation of the house and still pay no CGT?
- Can CGT relief be claimed on a house used for business, on which income tax allowances have been given?
- How much time can be spent away from the home without losing CGT relief?
- What are the implications of a divorce for CGT on the family home?
- Why you should buy this book
Comments on the previous edition
"No-one advising on the main residence relief from capital gains tax for private residence should be without a copy of the new 3rd edition of this book. David Williams combines expert technical analysis with invaluable practical guidance enabling practitioners to maximise the value of this very significant relief for their clients." Matthew Hutton, MA(Oxon), FTII, AIIT, TEP
"What I particularly like about David Williams' Capital Gains Tax and the Private Residence is the wealth of practical experience in dealing with property matters and tax which is clearly displayed throughout the text. As would be expected from an author of David's stature, this is a splendidly authoritative publication of which I, for one, shall certainly be making plenty of use." Robert Jamieson, MA, FCA, FTII, Past President, The Chartered Institute of Taxation
Contents
Introduction
The Legislation in Summary
The House Itself
The House and its Surroundings
The Multiple Owner
The Absentee Owner
The Business User
Trustees and Personal Representatives
Martial Breakdown and the Private Residence Relief
Miscellaneous Problem Areas
Interaction with Other Reliefs and Taxes
Appendices
Indexes
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MA, FTII David Williams
David E Williams, MA, FTII, was Tax Technical Partner of Smith & Williamson, Chartered Accountants, from 1987 until 2002, and until his recent retirement, iwas now a Consultant to the firm. He is a former Council member of the Chartered Institute of Taxation and a former chairman of its Capital Taxes sub-committee. Before joining Smith & Williamson, he spent 15 years with the Inland Revenue, latterly as a Senior Inspector of Taxes.
CCH
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