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We submitted a capital gains tax computation with main residence and letting relief. The total gain was £17,624 and main residence relief was agreed at £8,411. We then claimed a further £8,411 as letting relief. However, the Inspector says that the letting relief is the gain of £17,624 multiplied by
12/176 as the property was only let for twelve months out the total period of ownership of 176 months. We are not aware that the relief is apportioned or restricted in this manner.
Can any Taxation readers offer help here please?
Query T16,997 — House.
We submitted a capital gains tax computation with main residence and letting relief. The total gain was £17 624 and main residence relief was agreed at £8 411. We then claimed a further £8 411 as letting relief. However the Inspector says that the letting relief is the gain of £17 624 multiplied by
12/176 as the property was only let for twelve months out the total period of ownership of 176 months. We are not aware that the relief is apportioned or restricted in this manner.
Can any Taxation readers offer help here please?
Query T16 997 — House.
Reply by Scorpio:
House must first look at the legislation covering the lettings exemption which will be found at TCGA 1992 s 223(4). This needs to be read in conjunction with ss 222 and 223. On a first reading of the...
