letting relief

Mr Ovett purchased a house in Truro on 5 October 2001 and sold it on 5 April 2016 making a gain of
£290,000.
On 5 July 2004 he had been sent to work in Edinburgh, and he did not return to his own house until 6
January 2014. The property was let out during his absence, and he lived in a flat provided for him by his
employer. What is the gain arising?

Gain before PPR exemption 290,000
Less PPR exemption (working)
£290,000 ? 144/174 (240,000)
50,000
Less letting exemption: Lowest of:
(a) gain exempt under PPR rules: £240,000
(b) gain attributable to letting: £290,000 ?
30
174
= £50,000
(c) £40,000 (maximum) (40,000)
Gain 10,000
Working
Total
ownership Exempt Chargeable
Period Notes months months Months
5.10.01 – 4.7.04 Actual occupation 33 33 0
5.7.04 – 4.7.08 Four years absence working in the UK 48 48 0
5.7.08 – 4.7.11 Three year of absence for any reason 36 36 0
5.7.11 – 5.1.14 Absent – let 30 0 30
6.1.14 – 5.4.16 Occupied (includes last 18 months) 27 27 0
174 144 30

why is all 27 months exempt and what has he done with the 9 months remaining