another cgt question....

balmaiden

I would really appreciate any help with this as my accountant seems to have issues on the way I have worked this out.

I bought house for £42,500
sold it for £139,000
profit of £96,000
I owned the property for 7 years total ,lived in it for a year and rented it out for 6.

By my understanding I would get 4/7 exempt under the principle private residence exemption ( one year living in it plus the last 3 years of ownership)
This would come to £55,142.

I could then claim private letting relief of 40,000 which would leave £1358 to be covered by annual exemption.

I hope I am somewhere near right.

thanks in advance

balmaiden

Cheers jimmo,

Yes the £96,000 was a mis-type. We lived in it for the first year of ownership not in the last 3 years.

The accountant seems to think that I cannot claim ppr and private letting relief on this property.

balmaiden

No jimmo I didnt misunderstand him, he is actually my o/hs accountant and has been for a few years.
When I asked his advice, on the way I understood the situation, as posted above, He adviced me that I needed to bring in all costs regarding the purchase and sale of the house as these would be needed to calculate it properly as he wasnt sure about claiming for ppr and private letting relief.

Anyway thanks for your help I now know the way forward.