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NRCGT

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Property held 30 year and recently sold when individual is NR. PPR first 24 years and otherwise rented. HMRC's NRCGT calculator adds the last 18 months to the PPR period but the NR period post 05/04/2015 is in excess of 18 months and I don't think the HMRC calculator is necessarily correct. Assuming lettings relief is due on the fraction of the total gain relating to the period rented (on the lowest of the three options) then there is still a nil liability if the last 18 months PPR is ignored in the calculation. Can anyone clarify that the the last 18 months PPR suggested by the calculator should be ignored and that lettings relief is due? 

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By Matrix
14th May 2019 21:32

I thought you always get the last 18 months provided the property was the PPR at some point.

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By possep
14th May 2019 22:09

Thanks for replying. I did as well but there are posts on here suggesting otherwise.

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By possep
15th May 2019 12:43

I have found the answer on this site. last 18 months and LR apply. thanks to By Expat24
09th Sep 2017 17:49

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By norstar
14th Nov 2019 14:26

Sorry - meant to respond to your post Possep but have done on the OP. See my detailed reply.

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By norstar
14th Nov 2019 14:26

Hi - not sure you're right there. Look at:

http://www.legislation.gov.uk/ukpga/1992/12/section/223

Para 7 refers. You get the last 18 months if the property was your private residence at some point of your period of ownership.

"In this section “period of ownership”—
(a)does not include any period before 31 March 1982, and
(b)where the whole or part of the gain to which section 222 applies is a residential property gain which is chargeable to capital gains tax because of section 1A(3)(b)], does not include any period before 6 April 2015.

I.e. unless there was some PRR after 5/4/15, you won't get it as effectively, at 5/4/15 a big fat line in the sand is drawn and the period before is ignored and you're only working out your gains (and reliefs) on the period after.

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By norstar
14th Nov 2019 16:42

Update on this. Apparently CG64943 states that S223(7) TCGA92 only limits the period of ownership for the purposes of S223, not for S222. It goes on to say that a gain falls within S222 if the property has been used as the owner's main residence at any time in the period of ownership defined by S222(7) and that if the gain falls within S222 then S223(2) allows relief for the final period of ownership.

So according to HMRC, "based on this it is correct that when using the rebasing method where the property has not been used as the main residence after 05/04/2015 private residence relief will still be due for the final period exemption, however as you know, the calculation should not be adding on any days from before 05/04/2015".

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