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Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.
You won't qualify for absence relief as you didn't re-occupy the property before you sold it. That would have exemption the whole gain from CGT.
You will get exemption from CGT for that part of the gain covered by your occupation of the property and for that part of the gain covered by the last 18 months of ownership. You will also get letting relief for any period the property was let which isn't covered by the last 18 months of ownership. Letting relief will be the lesser of:
2 the sum of the gains for the period you lived in the property and for the last 18 months of ownership and
3 the gain for that part of the letting period not covered by the last 18 months of ownership.
Take a look at Example 9 in HS283 for an example where main residence relief and letting relief are given.
I hope this helps but let me know if you have any further questions.
Assuming the property was jointly owned, each of you will qualify for letting relief of up to £40,000 individually. You have to divide the gain in two and then apply the reliefs to your respective shares.
I'll do some quick calculations and get back to you.
I do the calculations using months but your figures are not far off. You should have no taxable gain. You can claim the costs of buying and selling the property against the gain too (legal fees, stamp duty, survey fees selling agent fees etc).
Yes, you do.