We study and extend the recently introduced total generalized variation (TGV) functional for multichannel images. This functional has already been established to constitute a well-suited convex model for piecewise smooth scalar images. It comprises exactly the functions of bounded variation but is, unlike purely total-variation based functionals, also aware of higher-order smoothness. For the multichannel version which is developed in this paper, basic properties and existence of minimizers for associated variational problems regularized with second-order TGV is shown. Furthermore, we address the design of numerical solution methods for the minimization of functionals with TGV2 penalty and present, in particular, a class of primal-dual algorithms. Finally, the concrete realization for various image processing problems, such as image denoising, deblurring, zooming, dequantization and compressive imaging, are discussed and numerical experiments are presented.