Getting a second mortgage

carlos1986

Hi

i currently own a house and am wanting to buy a second one. would the second house be suseptable to any taxes if i bought it or sold it at a later date?

Thanks

mij544

Yes, subject to capital gains tax allowances, I would have a look on the HMRC website for the details if I were you.

herbiesjp

And if letting out - tax on the income.

And potentially an IHT liability if you die before you sell it.

holly_hobby

You've not said which one you intend to live in.

As a general overview ...

There is no CGT payable on the sale of your main residence.

CGT is payable on the sale of a property for the duration that it has not been your main residence. (i.e if you have never lived in the property you are selling, then CGT is chargeable over the whole term that it has been held).

If the property has at sometime been your main residence (before sale), then:-
- the last 3 yrs of ownership of the property are treated as though the property was your main residence (so excluded from CGT liability)
- as are the yrs that you lived in the property before this period.
- with only the yrs when it was not your main residence accountable for cgt

You also have various items that can offset cgt liability i.e purchase price of the property, annual cgt allowance

Other taxes
tax on income recd - which can be offset with mortgage interest, costs and maintenance fees of the property
Possible IHT liability to your estate on your death - advice should be sought on IHT mitigation such as life assurance and trust planning - from a suitably qualified adviser.

The above is just a very general overview,(although I am a qualified (non practicing) adviser as I now specialise in compliance & regulation) any tax advice recd on a forum, should always be double checked with your accountant or tax adviser.

Hope this helps

Holly