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Second home owners

Paystream News

David McManus

Wednesday 21st Feb, 2018

If you own a second home it may be possible to save Capital Gains Tax (CGT) by nominating which is your main residence, where you have lived in both. Valuable relief will then be available against the CGT arising on the sale of the property with the largest gain, or that which is likely to be sold first.

Since 6 April 2016 landlords can only claim for the actual amounts they spend on replacing furnishings in let property during a year. Therefore, consider advancing the replacement of any furnishings to before 6 April 2018 to claim the relief in the current year.

If you have a Furnished Holiday Letting (FHL), you may qualify for some generous tax breaks, including obtaining full tax relief for interest on loans attached to the property, and a capital gains tax rate of 10% on eventual sale. However specific conditions need to be satisfied to qualify as a FHL, so please contact PayStream's Tax Advisory Team to see if your property may qualify.

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