Thank you for your reply. I am afraid you have not actually answered my main question, which is whether we can now make a PPR election for my wife’s flat, even though we have been married for more than two years.
I should explain that the reason we wish to make an election now is that although we currently spend more time in my wife’s flat, this will change when we both retire in a few years’ time, following which we probably spend more time in the house. An election will therefore cut out any future debate with HMRC as to where we have spent more time.
Re the sale of my flat, I should clarify that while terms have been agreed, contracts for the sale of my flat will only be exchanged in the next few days – we can therefore choose to time any election to be either now, before the legal sale of my flat, or immediately after contracts have been exchanged, when our relevant property interests will have just changed.
You refer to ‘the matrimonial home’ – as I stated in my original question, ‘we continue to use her flat and my rural house’, so both are matrimonial homes, which in this context is not a useful term.
Also it is not true that (as you say) we have chosen to live in the least valuable property – the house is worth more than the flat, but the flat is increasing in value faster (ie £ pa gain, rather than just %). Eventually the flat may be worth more - but not just yet.
So: can we make an election for my wife’s flat now (and, if so, should we make it either before or after I exchange contracts for the sale of my flat – or indeed both, if the sale would cancel the prior election)?
In respect of the period from Aug 2011 to Nov 2011, can we request that HMRC to use my wife's flat as our PPR based on the facts (ie that that is where we spent most of our time in that period) even though that period cannot now be covered by an election?
I look forward to your response.