01 Feb Tax tip: February 2017
Make sure you tell HMRC which of your properties should be treated as your main home for tax purposes when you buy a second (or even third) home
The property that has always been your main home is free of capital gains tax (CGT). Any other property where you have lived for part of the time will attract a tax exemption for the periods you have lived there and have elected for it to be your main home. If a property has been your nominated main home at any time, the gain for the last 18 months of ownership (36 months if moving into care) is free of tax, even if you do not live there during that final period. Note that the position can be somewhat more complicated if an overseas property is involved.
Tax tip supplied by Tax Briefs. Your tax situation will depend on your personal circumstances and we recommend you obtain independent tax advice. Any tax information is based on our understanding of current and proposed legislation and practice. The legislation and practice may be subject to change.