ExpertMedium2 marksMultiple Choice
ACCA · Question 07 · Chargeable gains for individuals
Which of the following periods of absence does NOT automatically qualify as a deemed period of occupation for Principal Private Residence (PPR) relief, assuming the individual returns to live in the house afterwards?
Which of the following periods of absence does NOT automatically qualify as a deemed period of occupation for Principal Private Residence (PPR) relief, assuming the individual returns to live in the house afterwards?
Answer options:
A.
Up to 3 years for any reason
B.
Any period working abroad
C.
Up to 4 years working elsewhere in the UK
D.
Up to 5 years travelling the world for leisure
How to approach this question
Review the statutory deemed periods of occupation for PPR: 3 years for any reason, any period working abroad, and up to 4 years working elsewhere in the UK.
Full Answer
D.Up to 5 years travelling the world for leisure✓ Correct
For PPR relief, deemed occupation includes: up to 3 years for any reason, any period where duties of employment require living abroad, and up to 4 years where duties of employment require living elsewhere in the UK. A 5-year leisure trip exceeds the 3-year 'any reason' limit.
Common mistakes
Confusing the 4-year UK work rule with the 3-year 'any reason' rule.
Practice the full ACCA TX — Taxation Practice Exam 6
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