PPR and letting releif on sale of property

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?

 

Many thanks

 

Sarah

Comments
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Pretty much correct

BKD |
BKD's picture

Thank you very much for your

kedgley |

Doesn't matter for this

courty61 |

You do not need to report anything on the tax return

lisler |

Despite that

ACDWebb |
ACDWebb's picture