I should be grateful if someone could please confirm my understanding of the scenario below. I do not deal with CGT regularly so just want to be sure I am advising the client correctly.
Client expects to sell a property at the end of May 2012. Details are as follows:
Bought in Feb 2003 for £100,000
Lived in it until end of Nov 2009
Let it out from Dec 2009 to end of Apr 2012
Assume it would be sold at the end of May 2012 for £160,000
My conclusion is that no CGT is due as the gain would be covered by the Principle residence relief. Client owned the property for a total of 9 years and 3 months.
Actually lived in it for 6 years and 9 months. Add the last 3 years of ownership and he is deemed to have lived in it for 9 years and 9 months. Hence no CGT due.
Thanks for any feedback.