Sale of Foreign Property - Uk Resident

[ny_rk]

My wife sold her flat in the Czech Republic recently. She bought in 2012 and it was her main residence until 2014 when she moved to the UK. She is a UK resident but a Czech national

I am assuming she will pay UK Capital Gains. Is any allowance given to the years when the flat was her main residence?

[jerome.lane]

She will benefit from the usual PPR rules. If you need any help with calculating the tax and returns, do contact me.

[ny_rk]

Thanks.

I looked at the HMRC website and I think my wife is eligible for some PRR (Private Residence Relief). My calculation for the relief was 2yrs (plus an additional 18 months HMRC gives) divided by 7 years she owned the flat - so she gets 50% of the gain exempt for CGT.

I think she may also be eligible for Letting relief. She rented out the flat for 5 yrs before the sale. My understanding is the Letting relief is the minimum of a) PRR b) Letting Gain which would be 5yrs (minus the 18 months HMRC gave for the PRR) divided by 7ys times the Capital Gain c) 40000 pounds.

Is my thinking correct?