How soon after nominating our main residence to HM Revenue & Customs can we sell it and still get partial Private Residence Relief on the Capital Gains Tax?

We bought a London flat 25 years ago, lived there for 11.75 years then moved out to an apartment in a country house in Surrey when we retired and have let the London flat for the last 12.75 years. Our current tenants’ 12 month let expires 4th January 2024 and we have warned them that we will not be renewing the letting and that they have 5 months to find accommodation elsewhere.

We plan to move back into the London flat and nominate it formally to HM Revenue & Customs as “our main residence with effect from 5th January 2024 in accordance with section 222(5) Taxation of Capital Gains Act 1992” and then sell it in due course, ideally before the end of the tax year so as to benefit from the 2 x £6,000 capital gains tax exemptions, The only problem with that is the HM Revenue & Customs Capital Gains manual says the nomination letter has to be sent to “an officer of the Board” but does not supply any address or indicate what evidence of previous residence and letting is required for the nomination to be accepted.

We already have a buyer lined up so is there anything in the legislation specifying how long we have to be in residence after nominating it to HMRC as our main residence before we can sell it and still benefit from partial Private Residence Relief on the Capital Gains Tax.

I usually go skiing in the USA in January and February but my wife is looking forward to easy access to London theatres and concerts again and presumably only one of us has to be physically present to count for any required period of residence?

Editors Note:

Please see HMRC’s PPR relief CGT calculator >> https://www.gov.uk/tax-relief-selling-home

Private Residence Relief