Nominating a PPR: Can someone please explain ESC D21

A question about : Nominating a PPR: Can someone please explain ESC D21

I live with my partner in her house which she has owned for over 20 years. In late 2012 we purchased a property jointly on a BTL mortgage which we refurbished with the intention of letting, however it has remained empty. We are currently contemplating whether to sell up and move into the second property (mortgage would be cleared) and then sell in a year or two, or whether to just sell the second property now.

Obviously, we are keen to minimise the amount of CGT we would have to pay in either case.

We now realise that it may have been possible to declare the second property as PPR (either for one or both of us), but we are now outside 2 year limit for making this nomination by about 4 months. However, we have read that this can be extended by ESC D21?

We've tried to research this area as much as possible but getting increasingly confused about the best course of action.

Best answers:

• So even if we did start living in property 2 and sold after (say) one year, I understand we would still be liable for some CGT at that point. How do we calculate that, and would the final 18 months of ownership be exempt?