Capital Gains on Private Residence

Capital Gains on Private Residence

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Thanks in advance for any help with this (hopefully very straightforward) CGT question.

My client purchased a property in 2005 as per private and only residence.

She moved out in Nov 2008 to another purchased property which became her private residence. She let out the first property until she sold it in Dec 2011.

Am I correct in thinking that I effectively pro-rate the PPR across the period that the property was owned (6 years = 72 months), assigning 35 months to PPR and 37 months to the time as a rental property. I have taken the calculated the gain, divided it by 72 and then multiplied it by 35 to calculate PPR and 37 to calculate the gain attributable to the rental period. I take the lower of these two and the gain is less than £40k.

Many Thanks

SD

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By tringyokel
12th Sep 2012 11:21

The principle is correct but she will also be entitled to PPR for the last 36 months as well.

This should leave you with one month chargeable before lettings relief.

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By Sarah Offord
12th Sep 2012 11:46

Wonderful!

Thank you!

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By TaxationPete
12th Sep 2012 19:04

Please provide actual dates, at leat MM, YYYY for each event and the purchase price, sales price, renatla periods and acquisition and legal and sales fees, and I will run the numbers for you. Regards Peter

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