have sold main residence not sure on second residence

oakview

Have just completed on the sale of our appointed main home but have a second home which we have had for the last 5 years. If we decided to sell what would be our tax position.Our second home has never beeen rented, just lived in both one in England and one in Wales. thanks in advance

whatatwit

I think it would depend a lot on where you are going to live now main residence has been sold and when you are thinking of selling your second home.

Are you planning on living in second home now?

I don't know how long you have to have a place as PPR when it has been a second home previously to wipe out any potential Cap Gain. (but there are some very knowledgeable folk on this board)

Has the second home increased much in value if you were to sell it now?

silvercar

if you can retrospectively declare the remaining home to be your PPR for the last couple of years it will be to your advantage. Houses that have been your PPR are exempt from CGT for the time they were your PPR and the last 3 years of ownership. So you could have had your remaining home declared as your PPR for the last few years without it becoming liable for CGT. I don't know if you can backdate your PPR declaration.

If you now move into (or declare PPR) on the remaining home it will be exempt from PPR for the last 3 years of ownership. So if you've owned it for 5 years, you will pay CGT on two-fifths of the gain -minus certain deductions.

oakview

My second home has now become my main home which is in Wales. We brought it six years ago for £92,000.00 since that time it has doubled in value.
Have no intensions of selling yet but would like to know the situation if we did decide to sell.

Cook_County

The gain on your home you just sold could be taxed if you had two residences and did not elect which was your main residence.