My relatives purchased a PPR and lived in a house from 81-87.
They still own this house and has never been rented.
What has happened the house since 1987. Is it just sitting there with noone in it.
They want to dispose of original house
Do they have to pay 20% on sale value or do they get exemptions for the years they were renting
AFAIA they do not have to pay CGT on the gain while the property was their PPR plus in some cases 12 months.
Doubt in this instance if you could claim the 12 months allowance to sell the property
Get independant tax advise
I would see the CGT bill calc something along the following lines
This is a very rough calc
Example
Selling Price ..........................500K
Less Selling Costs ...................10
Total ....................................490
Purchase Price ....40K
Costs say ......... ..1K
Total .................41K
Multiplier 2.687...110K ... .........110
Total (Gain ) ..........................380
Not PPR for say 240 months
Total period of ownership 312
Gain 380 K * 240/312= 329K
CGT = 329 * 20% = 66K
Certain assumptions made
Assume no improvements / enhancements