Private residence relief: deemed not a residence: residences in another territory: non-qualifying tax years
To be eligible to be nominated as the main residence it follows that a property must be occupied as a residence. From 6 April 2015 a property is treated as not occupied as a residence for a tax year that is a non-qualifying tax year (or non-qualifying partial tax year).
For an individual a tax year is a non-qualifying tax year if:
- The individual is not resident in the territory in which the residence is located (see CG64580) and
- The individual does not meet the day count test see CG64582
Where a nomination under s222(5) has been made previously in respect of a property that is located in a territory in which the individual is not resident, the nomination would lapse for any year after 6 April 2015 where the day count was not met, but otherwise it would continue to endure. (TCGA92/S222(6A)).
If the nomination was for a property in another country and that nomination lapsed because the day count was not met for that property, there would be a change in the combination of residences and a new nomination could be made in favour of a different property see CG64495.
If Mr A is a UK resident and on or after 6 April 2015 he acquires a residence in France, the residence in France can only be nominated for a year (or part of a year) if the day count is met.
If Mr A had acquired and nominated his residence in France to be his main residence prior to 6 April 2015 the effect of the nomination would only endure after 6 April 2015 for any year in which the day count was met. If the day count was not met for say 2016/17 but was met for 2015/16 and 2017/18 and later years. The original nomination would only lapse for 2016/17. The main residence for 2016/17 would be determined as a matter of fact.
If Mr B is resident in France he can only nominate a residence in the UK if he meets the day count.
Any nomination by a UK resident must be made within the time limits detailed in CG64495+.
For a non-resident liable to NRCGT the nomination can be made following disposal on the NRCGT return. TCGA92/S222A(6).