Rachel Gardner

I am looking to confirm my understanding of how to apply CGT Private Residence Relief to a family home that was situated in Poland but owned by a UK resident. The tax payer concerned was born in Poland and lived in the property with his parents and brother as a minor child. As an adult his parents vacated the property but he and his brother continued to live there. Due to a shortage of work in Poland he came to the UK in 2012. He found employment and also worked as a self-employed taxi driver for a time, completing UK tax returns and paying all relevant UK taxes as they fell due. His intention was always to return to Poland but he remained in the UK as he was able to find work here. In 2018 the brothers became eligible to purchase the property from the Polish authorities, at a significant reduction from market value, by virtue of their being long term tenants, and they took advantage of this opportunity. In 2023 it became clear that the tax payer and his UK girlfriend wished to get married and remain in the UK permanently and that he no longer intended to return to Poland. Following this decision the brothers sold the property. The sale completed in January 2024 and the tax payer remitted his share of the proceeds to the UK to be used as a deposit on a UK home. I believe that Conditions A and B 2. of CG65046 are satisfied and therefore Principle Private Residence Relief can be applied even though he did not reside at the property for any significant period of time after its purchase in 2018. I also believe that the conditions of CG65050 re periods of absence are satisfied because his absences were due to employment in the UK, a requirement of which was always to attend his place of work in person. I therefore conclude that the gain he made from ownership between 2018 and 2024 is eligible for full relief under Private Residence Relief but we seek confirmation of this before he submits his tax return for the 23/24 tax year.