I bought a property in April 2009 and rented it out in February 2012. Now I am thinking of selling it. From my understanding, the capital gains tax (CGT) calculation would be: purchased for £135,000; sell for £260,000; expenses around £10,000; total ownership 96 months; lived in it for 35 months; ‘bonus’ 18 months; means 53 exempt months or 55.2% exempt. So the chargeable gain would be something around £49,500 minus £11,000 allowance and then I can claim lettings relief for the remaining £40,000. This would mean zero CGT is due. Have I got this right?

Arthur Weller replies:
In principle, I agree with your calculations. However, you need to make sure that the £10,000 expenses you are claiming are eligible under the www.gov.uk/hmrc-internalmanuals/capital-gains-manual/cg15250 rules. Also, I used a figure of 34 months and came to a figure of £52,708 chargeable gain, before letting exemption and annual exemption. The annual exemption for 2017/18 is £11,300. The letting exemption cannot be more than £40,000.