Client moved out of main residence flat several years ago when he moved into a nursing home and his leasehold flat has been sitting empty since.
It appears the empty flat can still be classed as his main residence for the final 36 months of ownership, with the one year gap just about covered by the CGT annual exemption.
According to the lease terms, on sale of the property 2% of the market value is to be paid into a sink fund. This will be a payment of around £5,000. I cannot see that this payment will be CGT allowable but can anyone confirm if this is correct or not.
I did not even consider making an election for main residence on the flat. Is such an election an impossibility for a vacant flat where there is absolutely no chance of reoccupation by the present owner.