Owning two properties is becoming increasingly common, as people buy a place in the country, inherit property, buy houses for their children, or couples who each own a property move in together. However, owning two properties has significant Capital Gains Tax implications.
Do I have to pay stamp duty if I own another property?
Anyone buying an additional residential property will usually have to pay the additional stamp duty for second homes. This applies whether you’re buying a second home as an investment buy-to-let, for a holiday home or any other purpose. You have to pay the extra rate even if the property you already own is abroad.
What should I do if I have two properties next to each other?
In the summer, the sides of the house, with the least expanse of windows, is facing directly into the sun, thus reducing the heat buildup in the house. You should thus visit the lot at various times of the day to determine just how significant would be its direction and what the sunlight issues would be.
Can a married couple have more than one property?
Married couples can only have one principal private residence. If a property is sold which has been the principal private residence and was actually lived in at any time, the last 18 months of ownership are treated as private residence. If the property has grounds of over 0.5 hectares, a chargeable gain may arise on the land.
Can a property be more than one parcel?
In general, separating properties is much more difficult, and there are few applications where you need to have a single parcel. Most places won’t care if you submit for example building plans for a permit and your plans impact more than one parcel, provided of course you own all the ones in question.
When does a property become a private residence?
If a property is sold which has been the principal private residence and was actually lived in at any time, the last 9 months of ownership are treated as private residence. If the property has grounds of over 0.5 hectares, a chargeable gain may arise on the land.
