Can I buy a 2nd home without it being a buy-to-let?

ACG

They are not lodgers if it is their home, not yours. They become tenants.

You would need to get consent to let from your current lender.

00ec25

Simms92 wrote: »

Thanks all.

Additional question - I currently have lodgers in my current home. If I were to buy another property, do I get the £7500 lodger allowance for a second property?

I would be living in both.

NO you cannot

read the first sentence: https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4001

"Rent-a-room applies to income from providing furnished residential accommodation in the taxpayer’s only or main home, on or after 6 April 1992."

if you do not use the property as your main home then any rent received from the people living there is not covered by the rent a room allowance

note for RAR purposes there is no hard and fast definition of "main" home. It is a matter of fact.

as you will be owning 2 properties, both of which you (appear to) live in, the position for Capital Gains tax and which one of the two properties gets the private residence relief can be different because you can nominate a property for CGT purposes as "main" even if, as a matter of fact, the one you nominate is not your actual main home.


also note that if you have more than one lodger in the same property you will have to pay CGT on that property anyway even if it is the "main" one. You only get CGT exemption for one lodger, not 2 or more in a single property