Just trying to plan ahead and work out PRR if we sell in 5 years and a 10 year calculation also..... Have I got my head around capital gains tax?
Married couple, bought our flat in Sept 1993 for £40K. It's probably now £150k. Gain of £110K
Have been letting it since November 2011 and intend to continue to do so.
Moved out August 2011 so period of occupation (by August 2014) = 215+36 months, total 251 months.
Calculation in 5 years time from now 251/275 =.913 x £110,000 = total PRR £100,430
Calculation in 10 years time from now 251/335 =.749 x £110,000 = total PRR £82390
Sell in 5 years time (I know the value of the flat won't be the same) and have £9570 CGT before both our personal allowances and letting relief, taking CGT due to zero.
Sell in 10 years time and have £27610 CGT, the above allowances again taking it to zero.
(Please do forgive me if my figures are out)
Have I got the right idea or am I just being hopeful?