as I said in my e-mail just under £20,000 I think it was £19,950
Hi again.You should refer to HS283 here as part of this answer. A property gain will normally only be completely tax free if you live in for the entire period of ownership. The last 18 months of ownership is always given as a tax free period when a property has been your main home.f you sell the property for £120,000 ( a bit higher than you value it at for illustration purposes) having paid £20,000 to buy it, you will make a gain of £100,000.The gain for the period the property was your main home will be exempt from CGT as will the gain for the last 18 months of ownership. That accounts for £55,357 (£100,000 / 28 years x 15.5 years). The remaining non-exempt gain is £44,643 and that covers the period the property will have been let apart from the last 18 months of ownership.As the property has been both your main home and let, you are entitled to a further deduction called letting relief which is the lesser of:1 £40,000,2 the gain for the period that the property was your main home plus the gain for the last 18 months of ownership, £55,357 and3 the gain for the letting period less that part which coincided with the last 18 months of ownership, £44,643.Letting relief of £40,000 will reduce the remaining non-exempt gain to £4,643 and that will be covered by the annual CGT exemption of £11,100 which means that you should have no Capital Gains Tax to pay. Your accountant has missed letting relief.It's normal to calculate the taxable and non-taxable parts of the gain using months as opposed to years for more accuracy.I hope this helps but let me know if you have any further questions.
I have to go out for a short while but I will be back in about 30 minutes in case you have any further questions.