changing a BTL to principle residence

ginger_nuts

I bought a BTL in May 2005 .
I am considering selling my principle residence and the BTL .
Am I correct in saying I have 2 years from purchase to declare my BTL as my principal residence ,without having to prove it has been my residence .
If I did use the two year rule would I auctually have to live there or can I just declare it as my main residence .

Also at what stage would I have to pay CGT on my orginal house .

silvercar

if you live in two properties ie you don't rent either of them out, you can declare which is to be your PPR. If you actually rent a property out it can't be your PPR.

CGT is payable, under current rules, by the end of January following the end of the tax year in which the sale took place. So if you sell now the CGT would be payable by 31/1/08, if you wait to April then the CGT is payable by 31/1/09.