Lettings relief and PPR
I need to brain storm with someone. Client sold a house which they now need to calculate CGT on. I am confusing myself as to which months to include that falls within lettings relief.
Basically property acquired in Dec 2000, lived in until Feb 2004 (38 months)
Rented out from Feb 2004 until May 2007 (39 months)
Moved back in May 2007 until Nov 2009 (31 months)
Rented until sold Nov 2009 until Oct 2012 (34 months)
Total ownership was 142 months.
Gain is £87,000
How do I factor in the first rented period? Is it that PPR is 105 months (ie 38+31+36 (deemed) = 105/142
and lettings relief is based on 39+34 = 73/142. I am not clear how the first let period is taken into account when individual moves back home.
The upshot is no CGT will be due (either eroded fully by PPR (if I ignore the first let period - which seems wrong) or by a mix of PPR and lettings relief. I am trying to clarify the logic.
Thanks in advance
- Overpaid In Employers NI - RTI EYU for hundreds of employees 70 1
- Stumped - IHT 71 2
- Leaving the VAT FRS Scheme or trying to stay as long as possible? 395 6
- No PAYE Registration but need auto enrolment 461 11
- Tips on meals 115 1
- HMRC now overriding SA bank repayment details on tax returns 1,274 33
- Credit management tools 94 1
- Rental losses on jointly owned property 98 2
- property capital gains 94 1
- Write an article on latest tax changes for landlords. 763 20
- Incorporate to utilise dividend allowance next year? 359 7
- CGT and primary residence 146 1
- Marriage Allowance 239 3
- Private doctors - Ltd company vs partnership 1,138 12
- S455 and February year ends 299 7
- HMRC having technical difficulties 870 18
- Closing down loss-making company 439 5
- S.455 Tax again 282 3
- New Build 336 2
- Taxation of sinking fund contributions 375 4