Letting your PPR - Letting relief £40,000

[Rick]

If you let you PPR, in our case having lived in it and owned it for 5 years.

I am told the last 36 months of ownership will be free of CGT even after you move out? In addition you can get a further £40,000 letting relief for CGT purposes? Also if the property is jointly owned by a husband and wife they each get £40k relief on any gain? Is this correct and does anyone know if there are strict requirements to achieve this ?

Appreciate any feedback

Thanks

[Ian McTernan CTA]

The last 36 months are deemed to be PPR. The lettings exemption is indeed up to £40,000 each, but is restricted to the lower of the gain arising during the letting, the PPR relief amount or £40,000. Bear in mind that the gain is time apportioned over the entire period of ownership to calculate these amounts.

No strict requirements other than it has to have been your PPR at some time.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[jeff.smith@wcrx.com]

Sorry, but can you clarify, if I let my current PPR (House 1) which I have currently owned for 2 years, and I now let it out, and buy another home (House 2) which I move into as my PPR. In 3 years time can I sell House 1 and suffer no CGT?
Is there a minimum period for which a house must be my PPR to qualify for the 3 years relief? If not, what is to prevent me living in my Buy to Let property for one month prior to letting it out, and selling it 3 years down the line and suffering no CGT?