PPR capital gains &letting relief
Any help would be greatly appreciated.
In Aug. '07 I sold a small terrace house I'd owned for 4 years 10 months, which I had rented-out and then lived in.
The house was bought with the intention that it would be my own home. However, at the time of purchase, due to medical reasons, I was unable to work, so bought the house on a buy-to-let mortgage and rented it out, whilst I lived with my parents. This situation continued for approx. 4 years 6 months: house rented out, and me living without employment with parents.
After this time I began living at the property (still with btl mortgage) with the hope of staying indefinitely. Due to continued difficulties, however, I decided it would be best to sell the house (not wishing to rent it out again), and return to living with my parents. I put the house on the market, therefore, and it sold very quickly.
Between the tenants leaving and completion of the sale, I lived at the house for 4 1/2 months. After costs the capital gain was @£60k. My only income for the 07/08 tax year is @ £2,500 from bank interest.
1) Is there likely to be any problem establishing PPR? I have utilities bills, a land-line phone bill and council tax bills addressed to me there, as well as letters from my estate agent and solicitor concerning the house sale. (Although apart from these, I'm not sure what else I could show).
2) Assuming PPR is established, am I eligible for letting relief? If I am, would it be equal to the relief for the 4 1/2 months I lived there, or to the 36 months total PPR I would get.
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