Yet another CGT question - sorry

[dbullen]

Hi everyone,
I'm really sorry to be asking such a basic question as "how much CGT will I have to pay", but I promise I have been Googling this for ages, and I keep seeing contradictory information (for example some people say that Private Letting Relief is only available if you first live in a property and then rent it out, while others say it doesn't matter when you live in it....). Maybe the rules changed at some point and some of the info I'm reading is old?
Anyway if anyone can help with this, great. If not sorry for troubling you.
House bought June 2000 for £38,500
Rented it from the start - never lived there.
Proposing to sell now for £90,000
So the gross profit is £51,500.
As I understand it I would get 25% taper relief having owned it for 7 years, giving a tapered profit of £38,625, so after my personal allowance of £9,200, the remaining £29,425 would be taxable.
I earn around £30,000 so I'm expecting to pay 22% on £4,600 and 40% on the remaining £24,825 so the total tax bill will be around £10,942.
Is that correct?
Next question, if I was to move into the house for 6 months - and I understand this means really move in, not pretend - I would get still get the personal allowance of £9,200 and the 25% taper relief, plus 3 of the 7 years would be private residence relief, so a further reduction of 3/7 from £29,425 down to £16,814.28. Is this OK so far?
Would I then also be entitled to Letting Relief? And if so how much would this be (this is the particular thing that there seems to be conflicting advice on).
I'd appreciate any advice on this, once again sorry it's so basic. Think I've included all the relevant info. Oh, I'm not married.
Thanks in advance,
Dean

[TaxationPete]

Capital Gains Summary

Purchase Price £38,500 14/05/2000
Indexation 0.000 £38,500
Legal Fees £0
Sale Price £90,000 14/07/2007
Enhancements £0
Legal Fees £0
Gross Gain £51,500
PPR Relief £0 £51,500
Letting Relief £0 £51,500
Taper Relief 25% £38,625
CG Allow'ce 1 £9,200 £29,425
CG Bill £9,805

Now if you moved in lock stock and barrel for 9 to 12 months, 6 months attract an HMRC investigation, then yes the last 36 months of ownership will be CGT free and a proportion of the letting relief can be used. See
http://www.taxationweb.co.uk/capital...cle.php?id=215

Here are the figures with 36 months PPR remember that the move out date is now 4/08 and the vlaue may have risen to £100,000
Capital Gains Summary

Purchase Price £38,500 14/05/2000
Indexation 0.000 £38,500
Legal Fees £0
Sale Price £100,000 14/04/2008
Enhancements £0
Legal Fees £0
Gross Gain £61,500
PPR Relief £23,305 £38,195
Letting Relief £0 £38,195
Taper Relief 25% £28,646
CG Allow'ce 1 £9,200 £19,446
CG Bill £5,813

Proportional Letting relief will appllt to the period then tennants were in the property within you 36 months PPR period and would further reduce the gain as does all your legal expenses and sale agents which are normally deductable from the gross gain. However I have had a client claim for sale legal expenses rejected as it was her PPR for a year and PPR use does not allow the lagel expenses, we await a decision on this one and If you move back into your original house then HMRC may and do reject the PPR claim. If you keep your original home then a Nomination can secure this as long as you genuinely move in. If the ex rental property has not been lived in by you you can not use Nomination until after you move in, this transferes the 36 month rule across but exposed your original house to a years CGT, however even in the HMRC web site a nomination example is given for a 1 week or was it a 2 week period, so minimum effect. Regards IR283 on the HMRC.gov.uk web site. Regards Peter

[dbullen]

Thanks, Pete. I really appreciate you taking the time to answer. It's a great service that you do for people on here.
So judging by your working out, the taper relief is applied on the amount after PPR is taken into account? Wow it's complicated!
Different angle then, because I'd like to try a few different configurations - can you recommend a CGT calcuator? I don't mind paying as long as it's not too much.
Thanks,
Dean

[Tax Accountant]

Taper Relief is applied to gains remaining after all other reliefs and losses (if any) have been deducted. IE, it is always the last deduction before the personal annual exempt amount.

Letting relief applies to any property which has been:
your PPR AT ANYTIME in your ownership,
AND
which has been let as residential accommodation AT ANYTIME in your ownership, regardless of whether letting is before or after PPR use.

Letting relief is the lesser of:

(1) £40,000,
(2) Equal to gain exempted due to PPR Relief, and
(3) Equal to chargeable gain arising due to letting. There is some discussion regarding whether one should count the gains arising due to letting in the final 3 years of ownership. However, it appears that you should ignore any such gains arising due to letting in the final 36 months as this gain has not been charged.

Ramnik