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Hi.You only get exemption from CGT for that part of a gain covered by the period that you lived in a property and for any part of the last 36 months of ownership where you didn't. If the flat has been let, then each part owner will also be entitled to letting relief which will be the lesser of:1 £40,000,2 the sum of the main residence gain and the gain for the last 36 months of ownership of the property excluding overlaps and3 that part of the letting period gain not covered by the last 36 months of ownership.For disposals after 5 April 2014, the last 36 month exemption will be reduced an exemption for the last 18 months of ownership.If you do as you have suggested and live in the property for a year, the tax office may still questions your motives for moving into it. If they consider that you have moved into the flat simply to avoid CGT, they may refuse any relief at all. Some so called experts say it is easy to live in a property for just a few months to get the last 3 years of ownership as an exemption but it isn't. HMRC have won several recent tribunal cases. Take a look at HS283 for more information on the main residence and CGT.I hope this helps but let me know if you have any further questions.
Can you tell me when the tax is payable, would it be on completion of sale or on my tax return, and whom calculates how much is payable.