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Taking an example of Jack who purchased his property on 1st March 2008 for 100,000 and lived in it for 1 year until he let it out. Jack owned the property for exactly 10 years until he sold it on 28th of February, 2018 for 165,000 with a 65,000 chargeable gain (Assumption: no improvements) The first 12 months are exempt plus as he actually occupied the property at some point, he benefits from a deemed private residence relief exemption for the last 18 months. Therefore 30 months of 120 are exempt meaning 30/12065,000 = 16,250 of the 65,000 gain is exempt from capital gains tax.
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