ACCA TX ^UK Syllabus C. Chargable Gains For Individuals - Principal private residence relief - Past Papers ^{2 / 2}

On 31 March 2016, Angus sold a house, which he had bought on 31 March 2002.

Angus occupied the house as his main residence until 31 March 2007, when he left for employment abroad.

Angus returned to the UK on 1 April 2009 and lived in the house until 31 March 2010, when he bought a flat in a neighbouring town and made that his principal private residence.

What is Angus’ total number of qualifying months of occupation for principal private residence relief on the sale of the house?

A 72 months
B 54 months
C 114 months
D 96 months

On 12 February 2013, Marlon sold a house for £497,000, which he had owned individually. The house had been purchased on 22 October 1997 for £146,000. Marlon incurred legal fees of £2,900 in connection with the purchase of the house, and legal fees of £3,700 in connection with the disposal.

Throughout the period of ownership the house was occupied by Marlon and his wife, Alvita, as their main residence. One-third of the house was always used exclusively for business purposes by the couple.

Entrepreneurs’ relief is not available in respect of this disposal.

For the tax year 2012–13 Marlon is a higher rate taxpayer, but Alvita did not have any taxable income. Neither of them has made any other disposals of assets during the year.

Required:
(i) Calculate Marlon’s chargeable gain for the tax year 2012–13. (3 marks)