My client bought his current residence in 1983 in partnership with his brother for £45,000, but was not living in the property. My clients cost at the time £22,500.
In 1996, he bought his brother out and paid him £90,000, and moved into the property.
During 1999/2000, he spent £70,000 on an extension at the rear of the garden.
During 2009/10 he spent a further £120,000 converting the upper tow floors into self contained flats and started renting these out in late 2010.
My client has been living on the ground floor ever since. He is now in the process of disposing the entire property for £1.3 million.
How would the PPR and letting relief be applied on the gain, since it has always been his PPR since 1996?