Buy to let flat - Capital Gains Tax

ambercelery

Hi all

I have a buy to let flat that I bought 3 years ago. I lived in the property for the first 2 months but didnt realise that I could designate this flat to me my residence at the time (as I have another house - where i currently live).
I believe I have since missed the chance to say this is my main residence (as i think you have a 2 year window to do this).
I moved out of the flat having redcorated it and have since rented it out for 3 years. My tenants are due to move out in June this year.

I am thinking of moving back into the property for a short while as it will be easier for me to do all the required maintenance and fit the new kitchen and bathroom before I sell the flat. I think I would be there between 4-8 weeks before i sell.

Would it be worth my while in designating the property as being my main residence at this point?
I am thinking that it would not be beneficial as I will have to pay capital gains tax on the property from the time i purchased the house, to the time i moved in - which will be the main part of the increase in value (i doubt there will be much change for the 4-8 weeks that I am living there). But thought I would ask your advice.

Also, if it changes matters, I bought the property on my own and got married in September 2007. Would it be possible to transfer the property into my wifes name as well so that we can use both of our capital gains allowances. If so, what do i need to do to get my wifes name on the house ownership?

Many thanks

silvercar

The revenue are meant to consider thing on fact, so if you did genuinely live there for a few months they should accept that, though proving it may be difficult.

The rules give you exemption for CGT for the last 3 years of ownership if it has been your PPR at any time. So if you can get the revenue to accept that it was your PPR either when you first bought it or for the latter few weeks you will gain a big tax advantage.

Your marriage brings one advantage and one disadvantage. Bad news first, you and your wife can only share one PPR so you would both need to move to the flat to call it your PPR for the final few weeks. The good news is that you would get 2 lots of CGT allowance if you transferred it to joint names before you exchanged contracts on the sale.