confused about stamp duty on 2nd homes

[user1467297746]

we really want to move house! still staying at mums with toddler twins should be easier but we just need our own space. We've been away from the UK for decades! have sold up abroad and now have some cash to buy.

original plan was to by a semi or what ever for say 170K then 150 k left to buy 2 cheaper places for BTL

We arent having much luck on our residence - but we've seen lots of potential BTL -

our solicitor is saying that if we the cheaper house first ie intended BTL then the more expensive family home will get super stamp duty on it?

Actually it would be tempting to get a cheaper place first just to live in whilst waiting for the right proper family home to come up?

Your solicitor is correct. If you buy the cheaper place first you will be charged an extra 3% stamp duty on the second and third purchases regardless of which is your main residence.

what if we sell the "first" place? after buying the 2nd place?

I am also a self employed designer. Could I spread my business out to cover property rental? would that help get around it? or does it make it very complicated. I haven't officially started a company here yet.

I dont earn a great deal thru my work, perhaps 35 to 5o k per year.

What type of company should I do? In Hong Kong I was a sole proprietor.

what happens if you move to a new residential house if you own 2 BTL properties as well?

Would you pay an extra 3%?

Anything after the first property accrues the higher rate of stamp duty. If you sell the first place within 3 years of buying the second place, and the second is your main residence, you can get a refund on the excess stamp duty. Not sure how that is affected by BTL however.

You dont need a company to rent out property, the income just goes on a personal tax return. That bit is easy.

The insurances and legalities are not. But with savings interest rates well below real inflation, property is the only way to house money with a chance of growth.

I do worry that if the property market falls we would loose money if we tried to sell.
But I suppose we would be earning some money on our savings.

Wouldnt there be tax savings or allowances if the houses were held in a company rather than personally?

ooh sorry to jump on this but what happens if one of you owns a house in your own name and then you convert that mortgage on that house to a BTL and then buy a new property together with your unmarried partner whose name is not on the previous house mortgage - do you still have to pay 2nd home stamp duty in that circumstance?

i would think so since it is a 2nd home? I suppose if your name wasn't on the new house you probably wouldn't have to pay tho?

how do they find out tho?

If you are a couple but not married, you can each buy a house separately and not have to pay the extra SDLT. If, however, you jointly own a home, this obviously doesn't work.