News & Articles
News 25.4.14

Goodbye PPR elections?

News 25.04.2014

The consultation document on Implementing the capital gains tax charge on non-residents from 6 April 2015 states that the government are considering abolishing the PPR election, because it would cause too many problems to make it available to non-residents (who would automatically elect their UK property). It seems probable that they will end up having to do this, as under EU law they cannot allow it for UK  residents and deny it to other EU residents. The government is considering two options.:

  • Making the principal residence purely a question of fact, or
  • Setting out a series of tests to determine which of two or main residences is the main one.

The government have given no indication as to whether existing PPR elections will remain valid after 5 April 2015. It is unlikely that we will know what is going to happen until around September, so nothing needs to be done at present, but we should probably warn clients that this could happen when recommending future PPR elections.