PRR and Letting relief

PRR and Letting relief

Didn't find your answer?

Sorry just having an unexplained panic and would appreciate someone agreeing the following is correct.

Married couple bought property 18 years ago, lived in it for 9 then rented it for 9. Have now sold it for a gain of 200,000.

I will do this more fully in months but for gist can I confirm PRR is 9 years plus 18 months

Lettings relief is lower of 200,000 x 7.5 / 18=83,333

£40,000 each = £80,000

or the PRR of 200,000 x 10.5/18 =£116,000

So the lowest of those is £80,000.

So the gain would be

200,000

-116,000

-80,000

4000 which would be covered by the annual exemption.

Thanks for your help. I am more and more doubting myself on things and finding having no one to bounce off stressful.

Replies (2)

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By johngroganjga
06th Jul 2015 11:20

Looks right to me.

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By hughjoyce
06th Jul 2015 11:33

Thanks John, I know its stupid to panic!!!! :)

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