Second home tax

[BrownBottle]

Hi all I'm in the process of looking for a new family home.

As I already own a property that I rent out I'd have to pay 4% of the total value of the new home because of the second home tax (additional dwelling supplement). To avoid this I was going to move my rental property into a Ltd company however I'm now being advised that I might have to pay the 4% tax on the rental property when I transfer it over to the Ltd.

Does anyone know if this is definitely the case? I'm in Scotland.

[Eric Mc]

Would you still be living in the first home for any period AFTER you had transferred the ownership into the limited company?

[BrownBottle]

Hi Eric the first property is already rented out, my plan was to then keep our current home as a second rental property when we buy a new home.