CGT & let property exemption

[mangal]

I recently sold my house after 10 years' ownership. The house was rented for the whole period excpet for the first 2 months and the last 5 months when I myself occupied the property.
Can I write off against CGT the "let property exemption" of £40000?

[accountant@uktaxshop]

In general you will be eligible for some taper and indexation allowances over this period to reduce the gain. You also will be able to treat the final 3 years as if you lived in the property for that period, and therefore claim PPR for 3/10th's (plus the initial 2 months)of the total ownership.

you will also benefit from your personal CGT allowance of £7900.

The £40,000 you refer to is worked out as follows:

The amount of relief is the lowest of:
• the amount of private residence relief for the period, or
• £40,000, or
• the amount of any chargeable gain you make because of the letting.



James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436