When did we sell our second home in Norfolk?

This second home was never let and was solely used for our own private visits to Dorset. In August 2014 we sold our main property in Norfolk and purchased another larger property in Dorset so to be closer to our daughter and grandchildren on a full-time basis.

Why is HMRC cracking down on second home sales?

The “property sales campaign” is targeting those who have sold a property that is not their main home, and who have not told HMRC about any profits they have made as a result. It is aimed at those selling homes in the UK or abroad where capital gains tax (CGT) should be paid on the profits.

When do you have to pay tax on sale of second home?

There is a 9 August deadline for telling HMRC about any unpaid tax on the sale of a property, and any tax owed must be paid by 6 September. After the latter date, HMRC said it would take “a much closer look” at the tax affairs of people who have sold properties other than their main home but who appear to have paid no CGT.

When did we buy a second home in Dorset?

Q We have a second home (a small apartment) in Dorset which we bought in October 2011 in order to visit our daughter in Dorchester for a few weeks at a time since our main home in Norfolk. This second home was never let and was solely used for our own private visits to Dorset.

Can you sell your second home to qualify for capital gains?

Some people used to skirt around that limitation by selling their primary residence and moving into the second home. After living full-time in the former vacation for two or more years, they then could sell the place and qualify for the entire capital gains exclusion.

What are the requirements for a second home?

A second or vacation home must be a reasonable distance away from a principal residence. Typically lenders like to see a minimum of 50 miles for distance from the borrowers home . The owner must occupy the property for some portion of the year and the property must be suitable for year round occupancy.