Making a move

My clients are a husband and wife who live in London. They have lived in and have owned their only private residence for about 20 years and this is in their joint names.

About 15 years ago they purchased a flat a few miles away and this has been let out ever since. The flat is also owned by my clients in their joint names.

My clients are now approaching retirement and plan to move to the West Country to be nearer to their daughter and her family and will purchase a new home there. They have no particular time frame in which to do this but plan to sell both of the London properties.

I explained to them that while their home would be exempt from capital gains tax the rented property which is now standing at a large gain is potentially subject to capital gains...