Tax on a second home

[PETER--G]

Is there any tax to pay on a second home. We where thinking of investing in a property for our daughter for when she gets older (nothing expensive, about £80,000). Would there be any tax to pay a we already own a house?

[bednobs]

when you sell it, capital gains tax. If you derive an income from it (rent it out), income tax is payable if you go above the threshold

[Maydup]

There would be tax to pay on any income you gain from it and capital gains tax if you were to sell it. But tax is only paid on income not on buildings as such.

You would be best to seek advice on inheritance tax too, and decide at which point is the most efficent to transfer it into your daughter's name. too many ifs and buts regarding your other financial affairs to advise.

[Marciau]

I do not know if it would work but it may be worth putting this property into trust for your daughter.
I know of a case where this happened with a house left by the grandparents to a granddaughter and they passed away when she was 16.
I understand the house was rented out but I lost contact at that stage.

Marcia

[tonywiltshire]

If you are considering a trust take professional advice, it is a complicated and specialised area of law, explain what you wish to achieve and make sure you explain your position fully, also consider carefully who will be the trustee or trustees.

[yerbamate]

Capital gains tax will be due on the sale of the property.