When is a second home not a second home

Under a divorce settlement I was required to provide a home for my ex-wife and our children to live in. I have no right of access to the property and she pays no rent. After she remarried I sold the house. I accept that tax is payable on the increase in value but as it was not a BTL or holiday home can I offset the mortgage costs as an allowable expense on the basis this was an investment rather than a second residential home ? Would the rate of CGT payable be at the standard gain rate or would I have to pay the residential property rate even though no rent was passing ?

Hi ,
 

No. a mortgage is not an allowable deduction for CGT whether its a BTL or not - see : Capital Gains Manual  . The rate of tax due will be based on it being a residential property  . Thank you .