capital gains on a second property

[UKSBD]

What date is the gain from a 2nd property taken in to consideration
for capital gains purposes?

I will be buying a new home soon, but keeping my existing one as a 2nd
home. If I then sell my 2nd home in a few years how much of it would
be classed as a gain, the full amount or the difference in the value from
when it became the 2nd home and the sale price?

[MyAccountantOnline]

The profit you make on the sale ie sale price less the cost is the Capital Gain, and this is then apportioned to take out periods such as when it is was your Principal Private Residence. In effect you wont be subject to CGT on the entire profit.

[MyAccountantOnline]

PS Speak to your accountant about possible PPR elections.

[David Griffiths]

If you have ever lived in a property as your main residence, the last three years are always exempt from CGT, so there won't be any liability if you sell in that three year period.

If you sell after that period, then the gain is time apportioned. So for example if you've had the existing house for 15 years, and sell in four years time, 15+3 years will be exempt and CGT will be based on 1/19th of the gain. You (and any other co-owner such as your other half) will have an annual exemption to set against any gain - currently just under £10k each.

If that stays the same you'll only pay tax if the 1/19th profit exceeds £20k - in other words a gross capital gain of £380,000.

If you let the house after leaving it, there's something called lettings relief available.

That's the basic provisions. As always there are a few exceptions to this, but they don't affect the great majority of people.