CGT- lettings relief and ppr

SmithWilliam

Wonder if anyone could help with capital gains calculation as I' m confused over ppr & lettings relief when they overlap.

I have owned this second house for 6 years
Bought a second property (B) in Feb 02 for 125,000
B stayed empty for almost 4 years (47 months)

Rented B out from Jan 06 to March 07 (15 months)
Sold my first home (A) on 30th April 07
Moved into B on 1st May 07 and now wish to sell B in July 2008 for approx 200,000 and this is now my only home.

Gain= 200 - 125= 75k
Total ownership= 78 months
ppr=36months (36/78*gain) approx 34,620
now 75,000 - 34,620 = 40,380

Now can I receive lettings relief as that period is covered by the 36 months ppr?
I have been reading the HMRC website but haven't found anything relating to this.

thanks, William.

SmithWilliam

Many thanks Jimmo for confirming this. So, the two reliefs work completely independent of each other:

PPR = 34,620
Lettings = 15 months (15/78*gain) approx 14,420

Gain - ppr - lettings relief
75,000 - 34,620 - 14,420 = 25,960

25,960 -personal allowance(9,600) = 16,360
chargeable at 18% = 2,940 to pay


Jimmo, does that calculation look about right to you?