I am actually enquiring on behalf of my daughter who is resident in the UK
She and her husband bought the apartment in 2002 and lived in it until 2005 when they bought another residence and rented the apartment
Here are CGT calculations .. As the property was jointly owned, each owner would be able to claim letting relief. It is assumed the property is sold before 5 Apr 2014 as there is a change in additional relief available.. it will be restricted to final 18 months of ownership as opposed to 36 months up to 5 Apr 2014.
Potential capital gain
Period covered as main residence
(2002 - 2005)
Period covered as let property
(2006 -Feb 2014)
Total period of ownership
(2002 - Feb 2014)
Final 36 months relief
Private residence relief
Gain subject to CGT
Gain per owner
Maximum letting relief available - lower of
Fixed amount set by HMRC per owner £40,000
Gain on the part of the property that's been let
Gains chargeable to CGT
Gains annual allowance (£10,900 per owner)
There is no CGT payable as chargeable gain after private residence relief and letting relief will be covered by gains annual allowance as shown above.
I hope this is helpful and answers your question.
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