Thanks.

You made a gain of £62,410 (£330,000 - £253,000 - £7,590 - £1,500 - £1,500 - £4,000). The mortgage redemption fee is not a deductible expense. By the time you sold it, you had owned it for 86 months of which you lived it for 30 and let it for 56.

The following figures are for each of you and your wife as you will each need to disclose your respective shares of the gain. It's not simply a matter of dividing the botXXXXX XXXXXne by two as letting relief does not always work that way.

The gain for the period the property was your main home is exempt from CGT as is the gain for the last 36 months of ownership. That accounts for £23,948 (£31,205 / 86 x 66). The remaining gain of £7,257 is that part of the letting period gain which is not covered by the last 36 months of ownership (£31,205 / 86 x 20).

As the property was both your main home and it was let you are entitled to letting relief which is the lesser of:

1 £40,000,

2 the sum of the main residence gain and the gain for the last 36 months of ownership of the property which is £23,948 and

3 the letting period gain of £7,257.

So, the remaining gain will be covered by letting relief of £7,257 and you should each have no CGT to pay.

Let me know if you have any further queries.