If you rent out a property, which was at one time your PPR, you will qualify for the lettings relief.
This can be worth up to £40,000 against the gain realised on the disposal of a property.
Note that this relief is per person, so if property is held jointly it can attract up to £80,000 relief.
Unrepresented taxpayers frequently miss out on this relief.
Example:
John and Mary sell their investment property, which has been let out and which at one time used to be their main home.
They qualify for the maximum lettings relief and save paying tax on £80,000 of the gain (£40,000 each). Where capital gains tax is payable at the higher rate of 28%, this results in a tax saving of £22,400.
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