PTC - PPR advice needed please

DOTTY

Hi,

My sister is planning to do the following:

Buy another property and move into it whilst renting out her original flat.
Upon moving out of the flat and into the new house it will cease to be her main residence. She is planning to sell the flat in 2 1/2 years so am i right in thinking that no CGT would be due at all because the final three years of ownership are treated as though they were exempt main residence.

Is the above the case only if she has told inland revenue that the flat is her main residence and not the house. I will be glad of any advice, even though i have just sat PTC i don't feel i know enough to advise her correctly.
:001_smile: