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“…Jorge let the house out during all of the periods when he did not occupy it personally.” I am confused about the letting out period, is it the total period of ownership less(actual+deemed+last 18) or total unoccupied period less last 18months?
From what you have written above it is clearly stated that the property is let during all periods of non occupation by the owner this will mean that all of the gain chargeable (after PPR relief) is attributable to the period of letting and therefore will be eligible for lettings relief up to a max of £40,000 or the amount of the PPR relief if lower.
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