I'm struggling to get my head round a capital gains calculation. Please could someone point me to the correct place(s) in the Capital Gains manual?
Husband and wife bought a property in 1989 as a family home for £89k. They didn't move in because a job offer came with a requirement to live in. The house remained empty until 1994 when they split up and the wife moved into the house. They divorced in 1997 and the property transferred to the wife. The value of the property had dropped between 1989 and 1997 so there was no finacial payments made between husband and wife. The house was mortgaged and the wife agreed with the bank that she alone would continue to make the payments based on 1989 valuation. The property was then let between 2005 until 2016 with a break of 13 months in 2013/14 when it was empty for refubishment. It was sold March 2016 for £200k.
My questions are at what point do I take the valuation for PPR - when it was bought in 1989, 1994 when it started being lived in or 1997 when it because the wifes property. Do I need to take half of the value in 1989 and half the value in 1997 for the calculation. The second question is what date do I use for the time apportionment for PPR and lettings relief - 1989, 1994 or 1997.