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Hi.If you sell the property in, say August 2014, by that time you will have owned it for 325 months of which you lived in it for 296 and let it for 29.The gain for the period that the property was your main home will be exempt from CGT as will the gain for the last 18 months of ownership of it. That will account for £115,938 of the gain (£120,000 / 325 x 314). The remaining gain of £4,062 (£120,000 / 325 x 11) is that part of the letting period gain not covered by the last 18 months of ownership.As the property was both your main home and it was let you are entitled to letting relief which is the lesser of:1 £40,000,2 the sum of the main residence gain and the gain for the last 18 months of ownership of the property which is £115,938 and3 the letting period gain of £4,062.So, the remaining gain will be covered by letting relief of £4,062 and you should have no CGT to pay.
Take a look at HS283 here for more information on the main residence and CGT.I hope this helps but let me know if you have any further questions