I have owned and lived in my first property for 6.5 years, after which I rented it for 7.5 years. I’m now selling it. Am I exempted from capital gains tax (CGT) by reason of principal private residence relief? 

Arthur Weller replies:  

You owned the property for 14 years. Let's say the capital gain is conveniently £140,000, equating to £10,000 per year. The first 6.5 years are exempt, due to principal private residence relief. And the last 9 months of ownership are also exempt, due to the 'final period exemption'. So you are eligible for £65,000 + £7,500 relief = £72,500. This leaves you with having to pay CGT on £67,500, before the CGT annual exemption (I have ignored the lettings exemption, since from 6 April 2020 it only applies when the landlord is in joint occupation).