Capital Gains on Property: Help!!!

jimmo

Whilst it is not terribly important for the purposes of Mrs Amanda’s question on this thread, I am afraid Clapton’s computation is incorrect.
PPR relief is
(Period of occupation 20 months plus last 3 years, total 56 months)
56/83 * 38,000 = £25639.
Lettings relief is the lesser of
PPR 25639
Letting period (not included in PPR) (27 months)
27/83 * 38,000 = £12,361
The total of PPR and lettings relief is £38,000 which covers the whole gain and nothing is chargeable to tax.

KPR11

jimmo wrote: »

Whilst it is not terribly important for the purposes of Mrs Amanda’s question on this thread, I am afraid Clapton’s computation is incorrect.
PPR relief is
(Period of occupation 20 months plus last 3 years, total 56 months)
56/83 * 38,000 = £25639.
Lettings relief is the lesser of
PPR 25639
Letting period (not included in PPR) (27 months)
27/83 * 38,000 = £12,361
The total of PPR and lettings relief is £38,000 which covers the whole gain and nothing is chargeable to tax.

Spot on! As always! That Revenue brains of yours is still as sharp as ever and I see the Revenue Manuals are being put to good use!

As a planning point (not necessary in Mrs A's case) but if you are in a position to occupy it again for say 6 months then you get an extra 4 years as deemed occupation - only creteria is that it was your main residence some time before the absence and is the main residence after the absence!