Capital gains on house sale

Capital gains on house sale

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My client purchased their house in 1995 and lived in it up to 1998 as their main and only residence. Having purchased another house in 1998 this then became thier main residence and they let out their first home. They have now sold their original house in 2007.
Is taper relief available for the whole period of ownership or only the period they let it out and is indexation allowance available from 1995 up to 1998. I assume it is but would like to clarify the situation. Any help would be appreciated .
Peter Walker

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By kenmoody
06th Jun 2007 10:18

Yes that's right
Cost is indexed up to 1998, non-BATR since 1998 (I am assuming not let as FHL). The gain apportioned to the years of actual occupation and the final 3 years is exempt. The letting exemption applies to the remaining gain, being the the lesser of £40k or the amount of PPR relief.

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By User deleted
06th Jun 2007 11:26

CGT
For the period of ownership from 1995 to 1998 the house was the taxpayers main and only residence therefore exempt from CGT. Since it was occupied at some time as main residence the last 3 years of ownership are exempt from CGT.

From 1998 it became an investment property to the date of sale. Therefore, non- BATR applies and the gain from 1998 to 2004 is chargeable to CGT

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