3 March 2026 · Capital Gains · Property
Capital Gains on a second home: questions we ask first
The ownership timeline, improvement costs, and Private Residence Relief angles that matter before you instruct a solicitor.
Before instructing a conveyancer on a second home or a long-let property, we ask a short set of questions that decide whether Capital Gains Tax is likely and how large the estimate might be.
Ownership timeline
When did you acquire the property, and has it ever been your only or main residence? Periods of occupation can open Private Residence Relief; pure investment periods usually do not. Mixed histories need a month-by-month sketch, not a rough memory of “about five years.”
Cost base and improvements
Purchase price, stamp duty, and legal fees form the starting base. Capital improvements — extensions, new kitchens that add value, structural works — can increase the base if you hold invoices. Redecoration alone rarely qualifies. Missing receipts shrink the allowable base and raise the gain.
Letting and reliefs
Letting Relief is now tightly restricted. We check whether any residual relief applies and whether the sale timing interacts with other gains in the same tax year. Reporting deadlines after completion are short; planning before exchange is kinder than scrambling afterward.