Capital gains tax: Selling your second home – can you reduce the rate you pay? | Personal Finance | Finance

Before April 2020, this time period was halved from 18 months to nine.

Lettings relief is available for those who share the occupancy of the home with tenants that they out to.

To calculate how much relief one can get, a person will need to work out the proportion of their home that’s let out and if eligible, they can get up to £40,000 in Letting Relief.

These reliefs are the only way that a person can reduce their capital gains tax liabilities. Firms usually urge sellers to discuss the capital gains liabilities with their solicitors before making any decisions. 

Sellers can also payments such as solicitors’ and estate agents’ fees from the capital gains they make on the sale of their property. People will still have to pay the fees however, they won’t have to pay tax on that amount of their capital gain.

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