Residence disposal

03 October 2007

Issue: 4128 / Categories: Forum & Feedback , HMRC powers

My client owns the house he lived in until March 2003, when he took up work overseas and rented the property out. He has now decided to sell the house, but has not returned and will not be returning to the UK in the foreseeable future and hence will not re-occupy the property. The property is still let. On disposal, will the gain be covered by the main residence exemption?

My client owns the house he lived in until March 2003 when he took up work overseas and rented the property out. He has now decided to sell the house but has not returned and will not be returning to the UK in the foreseeable future and hence will not re-occupy the property. The property is still let. On disposal will the gain be covered by the main residence exemption?

The second of the three permitted absences for relief is: 'any period of absence however long provided that throughout the whole period of absence the individual worked in an employment or office all the duties of which he performed abroad'.

However the relief seems to rely on the taxpayer's residence in the house both before and after the period of absence.

My client meets the working abroad requirement but he has not...

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