As far as I know, the following is the case:Quick question ......I bought my previous home in 2002 (250,000 approx.), moved out and rented it in 2007 (at the peak of the market value 400,000). In terms of "when" it became a rental property (at its peak value) does this have any bearing on maximising the Capital Gains Loss? (value now 200,000 approx.)
The final 12 months is always included as a period of personal ownership if you have ever used it as a PPR and is not included for the purposes of CGT - whether that's a gain or loss.
If you bought on January 2002 and lived in it until December 2007 and went to sell it on December 2014, I believe the calculation would be as follows:
Purchase Price: 250,000
Sale Price: 200,000
Total Period of Ownership: 13 years
Period not applicable for CGT purposes: 7 years (6 years as PPR and final year)
Total loss available to offset against future CGT gains: 6/13ths of total loss
Loss Carried forward: (50,000/13*6) = 23,077
The value of the property when it became a rental property has no bearing on the calculations.