I lived in my house for 5 years then rented it out for 34 months whilst I attended university in another city. I then returned to the house but three months later find my new career does not yet pay enough to meet my costs so I'm obliged to consider renting it out again, for a year or two, whilst I rent somewhere cheaper and smaller. Will I be able to claim Principal Private Residence (PPR) relief for the period of my second absence?

Arthur Weller Replies:
If you a) return to live in your house again sometime in the future as your PPR, and b) you make an election that your house that you own is your PPR from when you moved out of it (i.e. to the exclusion of your rented property) then you may be able to claim PPR relief for 2 months of your absence. The reason is that a taxpayer can claim PPR relief for a period of absence of up to 3 years, for any reason. You have already used up 34 months of this. (The other two reasons for claiming PPR relief for a period of absence, i.e. due to employment elsewhere in the UK, or employment outside the UK, are not relevant to you.)  See www.hmrc.gov.uk/manuals/cgmanual/CG65030.htm.