I own two properties. Which one is exempt from CGT?

Only one property can be your main home at any one time for CGT purposes. Your main home is covered by Private Residence Relief and is generally exempt from CGT when you sell it. The other property — whether it's a second home, a buy-to-let, or a property you've inherited — won't benefit from PRR and any gain on sale will be subject to CGT. If you own two properties and haven't formally nominated one as your main residence, HMRC looks at the facts: where you spend most of your time, where you're registered to vote, where your post goes, and so on. You can formally nominate your main residence by writing to HMRC within 2 years of first owning two homes at the same time. If you've recently acquired a second property or are planning to sell one, it may be worth getting advice on your specific situation — message us on live chat or book a call here.