New queries: Private residence; Diplomatic privilege...

Private residence

We act on behalf of various members of the armed forces. The usual scenario is that they are being sent to work abroad for a period of years their families will be accompanying them and we have been asked to prepare statements of rental income and expenditure in respect of their main residences.

I am wondering whether an election should have been made that their UK property should continue to be treated as their only or main residence for capital gains tax purposes. I realise that it should be made where a person goes overseas and say rents a property abroad but what is the situation where the army or navy provides the accommodation?

My understanding is that in some cases the quarters are provided with no rental charge and in others that a deduction is made from the pay of...