one for you CGT experts

chappers

One of my friends has split up with his girlfriend and he wants to sell one of their properties and split the equity so he can start up again on his own.
Now shee says she has taken some advice and that they will be liable for £25K CGT.
Now i have worked through this and don't believe that is true.

The details are as follows

They bought the house in Februray 1991 for £125,00 and lived in it as their own residence until 2005. They then bought another property and rented out the original house until now, my friend has now moved back into it.
If they were to sell it next year for £240k what would the CGT be I think there wouldn't be any based on the following


Purchase price £125,000
sale price £24,000
Taxable gain £115,000

Residential relief 7/9 * £115,00=£89,444
letting relif £40,000
personal allowances £10,100 * 2= £20,200

Total relief £149,644

Is this correct

Cheers
Gareth

CLAPTON

Its worked out in months really but

they have owned the property for 18 years
they lived there for 14 years

so PRR is 14 +3 years (last three years ) i.e. 17 in total
so allowance of 17/18
so 115,000 x 17/18 is exempt = 108,611

plus letting relief of the lesser of 4/18 or 40,000 ie. 25,555

so nothing due.

chappers

cheers for that sorry 1991 was a typo meant to be 2001 but get the jist that my figures are correct.
Cheers for that