CGT Private Residence & Lettings exemption

CGT Private Residence & Lettings exemption

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My client owns a three storey property divided into three separate flats.  He lives in the top flat and lets out the bottom two.  For the first year of ownership however, he occupied the whole property as his main residence.

He is now selling the property so it would seem that he should be able to claim 2 1/2 years worth (first year plus final 18 months) of the gain as being PPR exempt in respect of each of the bottom two flats.

As the bottom two flats have both been his PPR and they have been let he should be able to claim lettings relief.

My question therefore is can he effectively claim up to £40,000 of lettings relief in respect of the gain on each flat, i.e. potentially up to £80,000 in total?

Many thanks for any advice

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By cohen
05th Dec 2014 20:32

Lettings relief is limited to £40,000 if this is sold as a single property.

This might be of interest:
http://www.bbc.co.uk/news/10294803

 

 

 

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