Home Truths

Summary


The taxing question of a second home

My husband has been approached to take a job in Scotland. We would like to keep our present house in Surrey as an investment for retirement and buy something smaller in Scotland, but we would then have two mortgages. Is this possible, and what would be the capital gains tax position if we rented the property to our two daughters who cannot afford to buy anything of their own in the area we live in at the moment?

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Home Truths

There is no problem in taking out two mortgages as long as you can convince your lender that you have sufficient income to cover the repayments. Any property which is not your main home will be liable for capital gains tax.

However, the Inland Revenue does allow ...

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