Peter Chalk & Co

Specialists in Taxation for the Clergy

Useful Templates

Principal Private Residence Election.
 
For people who are required to live in job related accomodation by virtue of their occupation e.g.Clergy you are entitled to nominate one other property to be regarded as your principal private residence for Capital Gains Tax purposes, even if it has been let out for the whole period of ownership.  This means that when this property is disposed of there will be no capital gains tax to pay.  You are however required to submit an election to this effect within 3 years of acquiring the property although late elections are considered by the Revenue usually favourably.
 
The form of election is by written letter sample as below (your headed paper can be used if you have some):
 
Rev and Mrs.........
your address line 1
your address line 2
your address line 3
Postcode

Tax Office Ref:
 
Nat Ins No: .....................(Partner 1)
                 .....................(Partner 2)
 
Date:
 
Dear Sirs
 
We hereby elect that our property at ........... insert address of (rented) property.......should be treated as our Principal Private Residence for Capital Gains Tax purposes with effect from ........................... insert date
 
Please acknowledge acceptance of this election.
 
Yours faithfully
 
 
Name Partner 1              Signature .......................
Name Partner 2              Signature .......................
 
 
 
This should then be sent to the respective tax offices of each partner and for our registered clients the election should be sent to ourselves for onward transmission to your tax office so we may note our file accordingly.
 
Obviously where the property is owned by just one person the tense of the above letter would need altering and details altering as appropriate.

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