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Thanks for your speedy reply.
We actually live in both of them, but both are still separate flats, they have separate mortgages, utilities and council tax. So HMRC will choose which flat we lived in or we can say that we lived in the bottom flat (which in effect we do).
Can you advise the calculations so we can work out how much we were liable to pay? The bottom flat was purchased for £175k and the upper flat for £220k.
Thanks for your help
Thank you again.
Just on the backdating bit, I found this last night, is this old information?
'TP writes:Where a taxpayer has two residence available for his use, the question of which one is treated as the main residence for capital gains tax is determined on the facts. However, the taxpayer can put the matter beyond doubt by electing which of the two residences is to be the exempt one for tax purposes. The election has to be made within two years of an additional residence being available and can be back dated to that date. The property nominated does not have to be the one that is used the most, it just has to be available and used by the taxpayer.'
And one final question, would it be possible that we would get charged Cgt on both flats?
That information is what I explained in my first post. You had 2 years from 2011 to declare your main residence. You and your husband would have needed to sign and declare which. The 2 years passed in 2013. The back dating means you can say within 2 years which and then the 2 years is also included in the time. You could declare now that you are using one or the other and the time would be included. If you have not ever declared you can say now and then when you sell that one will be excluded from CGT. If you do not then you would pay but only on the flat that is not your residence.
No, one or the other is your primary residence so you would not be charged on both.
Thanks ever so much Robin. You've put my mind at rest. Great service.