I've just been checking the HMRC calculator for NRCGT to make sure it agrees with my figures and I note it deducts the £12k annual exemption in computing the taxable gain before it allows Letting Relief to be entered. It does this for all 3 options. Surely this is wrong. The taxpayer might well wish to use the exemption on another disposal. If his Letting Relief reduces the taxable gain to less than £12k, why should he have to use up his whole allowance on that asset?
Is this yet another example of HMRC messing it up (or trying it on) or have I missed something here? I know Letting Relief will soon only become available to Rigsby and his like, but have they subordinated it to the annual exemption as well? Must have missed that announcement if they have.