ExpertHard2 marksMultiple Choice
ACCA · Question 07 · Chargeable Gains for Individuals
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?
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?
Answer options:
A.
84 months
B.
93 months
C.
120 months
D.
45 months
How to approach this question
Map out the timeline. Identify periods of actual occupation. Apply the 'working abroad' deemed occupation rule (requires actual occupation before and after). Add the final 9 months exemption.
Full Answer
B.93 months✓ Correct
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.
Common mistakes
Using 18 months or 36 months for the final period exemption instead of the current 9-month rule.
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