HMRC state that the private letting relief can be used where:
- you sell a dwelling house which is, or has been, your only or main residence, and;
- part or all of it has at some time in your period of ownership been let as a residential accommodation.
- the amount of private residence relief that has already been claimed;
- the amount of any chargeable gain that is made due to the letting; that is, this is the amount that is attributed to the increase in the property value during the period it was let.
- amount of private residence relief already claimed is £50,000;
- amount of any chargeable gain that is made due to the letting is £20,000 (assuming that property increased by £10,000 in each of the two years that the property was let).