A residential property has been owned for 20 years, sold & realised a gain of £500K.
It was his PPR for 5 years (including final 9 month period), let as an ordinary residential let for 13 years & let as a qualifying FHL for two years immediately prior to sale.
My view is that PPR relief of £125k reduces the chargeable gain to £375 which is chargeable @ 10% (excluding AE) as it met the FHL criteria for the relevant period & therefore qualifies as a business asset for BADR purposes. However, an alternative opinion provided is that BADR only relates to two years out of the 20 year ownership period so the gain is actually £125K exempt PPR, £325K @ 28% & just £50K @ 10%. Is there any merit to the later opinion?