The house was purchased in 1982.
1) Lived there till 1992
2) Moved to 2nd house and lived there from 1992 to 1994.
3) moved back to first house and lived there from 1994-2000.
4) Rented out from 2000 to 2012(summer) when it was sold.
5) During this period various loans were raised to adopt the house
for the needs of special people.
6) I think, the solicitor subjected the first property to bed and breakfast
treatment to the tune of £350,000.
7) In 2012, it was sold off for £450,000.
Soon, the 2nd house would be put up for sale. Can we treat the 2nd house also as PPR as she lived there for 2-years. And also 3-years private letting relief.
She also sold another house very recently and can she claim taper relief as non-business asset: She had this house in possession for over 4 years meaning 10% relief.( I will look at the chart to be precise as regards to % relief).
Because of the negative equity, the bank is forcing her to sell her properties to recover the difference between the amount borrowed and present value of the property. The properties were purchase at the peak of boom.
The lady is not quite confident in providing any information except some scant information and from this scant information, I will have to draw the conclusion for CGT. The inspector (tax) in our area is a little bit lacking in the name of humanity and is not willing to advise the precise course, which should be taken to avoid unpleasantness.