S224(3) restriction on PPR claim

A client converted his PPR into 3 flats. He has subsequently sold one of the flats (after having lived in it for 12 months) and I am calculating the CGT position.

He lived in the (unconverted) house for 12 years, then lived in the flat that has been sold for 1 year (2008-09).  The last 36 months may also be claimed.

I can see from HMRC website that you have to restrict the amount of PPR relief you can claim, however it indicates that you need to compare the restricted gain to the gain arising on the flat.

1) I am assuming an A/A+B calculation is needed to calculate the 'normal' gain - is this correct?

2) What PPR can I claim?  Can I include the period living in the house or is it just the period it was a flat?

Any thoughts or comments on this would be appreciated.

Comments
There are 4 comments. Login or register to view them.

There are potentially two disposals to consider

Steve Kesby |
Steve Kesby's picture

He initially moved out while

rachelb |

I see

Steve Kesby |
Steve Kesby's picture

Thanks for your help Steve.

rachelb |