We are renting my wifes (pre marriage) flat out, having just done the tax calcs for 2004-2005, it has raised a question in my mind for the 2005-2006 tax year.
During 2005-2006 we had a tenant in from April to July, we then moved out of our primary residence into the flat while our primary residence had the builders in for a month. Finally we moved back in August, the flat was then rented from November onwards.
I am right in thinking that for calculating the profit on the rental property I should pro-rata out the 30 or so days we were in the property for mortgage+service charge purposes?
Also does this have any CGT implications (my guess is not)? We're not planning on selling the rental property anytime soon but we may sell our primary residence at some point over the next few years.
Peter