Tax implications of selling 2nd property

AyJaydee

Hello, I hope that someone can answer this one for me.

For both my wife and I, it is marriage second time around. She has now retired and I have 2 years to go. We both brought our own properties into the marriage, we live in her's and I have been renting out mine since we married, which gives a welcome boost to my pension pot contributions.

I am now thinking of selling my property, either to fund the purchase of another property for rental nearer our home or; we sell both our properties and put the funds together to buy a home that is both of ours.

I gather that if I need a mortgage for additional funds, then I will have to do this before I retire.

Whichever option I finally decide to take, are there any large Tax implications in selling a second property?

Thank you

AdrianC

There's the potential for CGT for time you've owned it but not been living there.

00ec25

AyJaydee wrote: »

are there any large Tax implications in selling a second property?

Thank you

you need to work out your CGT liability
- you can claim PRR up to the earlier of the date you re-married or the date it was let
- you can claim LR for the period it was let
- you get your exempt amount.
(your current wife is irrelevant in this calculation but the fact you remarried and let it means it is no longer your main/only home since that status applies to the one she owns where you are deemed to live with her as a married couple. You can't have a his 'n her house for tax when married )


see here for details:
https://forums.moneysavingexpert.com/showpost.php?p=73621764&postcount=2


NOTE
If you sell in or after April 2020 the letting relief is by then abolished so you cannot claim any at all. You can still claim PRR, but your CGT liability will be higher without LR.