My client bought 50% of a flat in July 2001 for £215,000 (her share £107,500) and lived in it until March 2008 when she moved out and rented the property.
The property was sold in October 2011 for £287,500 (her share £143,750). leaving a potential gain of £36,250
PPR releif is available up to March 2011 as three years deemed residency so this reduces the gain to £36,250 * 7/123 = £2,063. This is covered both by the annual allowance of £10,600, and letting relief of £40,000
Have I calculated the gain of 7monthe over 123 months correctly - the gain is pro ratered over time?