PPR and letting releif on sale of property

Posted by kedgley PM | on Wed, 16/01/2013 - 14:24 412 5 comments | report

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 | Wed, 16/01/2013 - 14:33

Thank you very much for your

kedgley | Wed, 16/01/2013 - 14:43

Doesn't matter for this

courty61 | Wed, 16/01/2013 - 16:45

You do not need to report anything on the tax return

lisler | Thu, 17/01/2013 - 21:08

Despite that

ACDWebb | Fri, 18/01/2013 - 08:28