Implications of buying and living in two properties...?

kirstyegg81

Hello,
My husband & I are selling our house in the South East and moving North to be nearer family and our new jobs. Helped by the north-south divide in property prices, we are proposing to buy two properties - one for Mon-Thur close to work, and one for Fri-Sun close to family.

Can anyone advise on the implications we need to consider with this proposal? Do we pay two lots of council tax etc? Capital Gains tax when we sell one or both? Could we get round any of this (legally of course!) by having one property in my name and one in my husband's name?

Any advice or info appreciated, thanks in advance.

Fire_Fox

Welcome to MSE!

IIRC if you are married - but not legally separated - you are classed as living together for the purpose of council tax, you might get a modest discount (?10%) for your second home, check on the council's website. Also check on the inland revenue website about capital gains on a second home, or one of the more tax-minded regulars will answer shortly!

getmore4less

HMRC say no to having one each for CGT.

http://www.hmrc.gov.uk/CGT/property/sell-own-home.htm#5

silvercar

As far as CGT goes, you need to declare which one is to be considered your PPR within the first 2 years of ownership of both. You can switch which one is your PPR at any time by informing the IR (refer to MPs house flipping). When you come to sell a home that has been your PPR at some time, you are exempt from CGT for the time it was your PPR and the last 3 years of ownership. The need to flip at some point is so that you gain this extra 3 years on both properties. You also both get a CGT allowance (currently £10,100).

So with careful planning and flipping, you can minimise the CGT you pay.

lincroft1710

Increased risk of burglary as both properties unoccupied for several days each week. Double decorating, insurance (home and contents) and poss heating costs, you can't leave either house unheated over winter, even if it is just background heat.

anotherginger

you'll have to pay two TV licence fees as well!

Fire_Fox

anotherginger wrote: »

you'll have to pay two TV licence fees as well!

You might not ... students away from home in semester can apparently be covered by their parents TV license. Needs investigating.

anotherginger

i can say that in my student days i paid for a tv licence (well, split between five).

AND

my parents have to pay for two TV licences (main resident and holiday home), even though if they are not in one they are in the other and therefore never watch TV in both properties simultaneously.

silvercar

Needs to be portable to avoid getting a licence in their own right. So watching TV through their laptops when not recharging the laptop is OK.

uk_property_expert

If property is not your main home you may be entitled to a discount. If only one partner is living in a property and there are no other adults or grown up children living there you can get 25% discount on your council tax, this is from government guide,
Reducing your Council Tax bill


You may be able to reduce your bill if:

• the property is empty
• only one adult lives there
• you are disabled
• you are a student
• you are a student nurse

If you're on a low income you may qualify for Council Tax Benefit.
Your full Council Tax bill is based on at least two adults living in a home. If only one adult lives in a home (as their main home), the Council Tax is reduced by 25 per cent. The bill doesn't increase if there are more than two adults in the home.
Certain people aren't counted when working out the number of adults who live in your home. If the property isn't the main home of the people living there, then a discount may also apply.

Fire_Fox

Council tax and married couples/ second homes:
http://forums.moneysavingexpert.com/showthread.html?t=1783023
http://forums.moneysavingexpert.com/showthread.html?t=1582741
http://forums.moneysavingexpert.com/showthread.html?t=1846453