Section A: Objective Test

Sarah sold her only home in March 2024, having owned it for exactly 10 years (120 months). She lived in it for the first 2 years, then was required by her employer to work abroad for 4 years. She then returned and lived in the house for 1 year, before moving out to live with her partner for the final 3 years until it was sold.

How many months of ownership will qualify for Principal Private Residence (PPR) relief?

Total ownership = 120 months. 1. Actual occupation: First 2 years (24 months) + 1 year after returning (12 months) = 36 months. 2. Deemed occupation (working abroad): 4 years (48 months). This qualifies because it was preceded and followed by actual occupation. 3. Final period exemption: The last 9 months of ownership always qualify if the property was ever the taxpayer's PPR. The remaining 27 months (36 months living with partner - 9 months final period) do not qualify. Total qualifying months = 36 + 48 + 9 = 93 months.