I have a client for whom the election will be beneficial but I am confused about PPR/Letting relief and where this drops into the time-apportionment.
Is the time apportionment applied to the gross gain or do I calculate gross gain, then take PPR and letting relief to arrive at the total net chargeable gain (this would be the same calculation if the client was UK resident) and then time-apportion that net chargeable gain to arrive at the gain relating to the period 6 April 2015 to date of sale? The latter seems to me to be the sensible route.
I ask because it seems that the HMRC tool time apportions the gross gain to get to a percentage arising post April 2015 and then takes the PPR relief off the time-apportioned gross gain - which feels inherently wrong to me!
Any help appreciated!