I am currently living in rented accommodation, having sold my previous main residence nearly 18 months ago. I am now looking to purchase a new main residence within the next few months. I also have a number of buy-to-let properties. Will I have to pay the higher rates on the purchase of my new main residence?
Provided you purchase your new main residence within 3 years of the sale of your previous main residence, you are considered to be replacing your main residence, and therefore the higher rates will not apply.
In a property portfolio if one of the rental properties falls into negative equity and sold. Will the loss be an expense? For example if it was bought for say £100k and sold at a later date for £90k then will £10k shortfall be an expense toward the income from other property portfolio?
This shortfall is called a capital loss and can only be adjusted against the capital gain of another property but cannot be taken as expense against your regular income such as rental income etc. Meaning that if you have sold another property with a gain of £25,000. That loss will be adjusted against this gain and you will pay tax only on £15,000 (£25,000 less £10,000). I am ignoring the Annual Capital Gain Tax Allowance (£11,100) for the sake of simplicity. If you have not sold any property with a gain on it in the current year (the year where a property was sold with a loss on it), you can carry forward the loss for future years and can adjust this loss against any future gains. Alternatively, this loss can be carried back to any past gains where you have already paid capital gain tax and a refund can be claimed.
Similarly, if the interest only mortgage on a rental property (in a property portfolio) comes to an end and the property need to be re-mortgaged with another lender. If then the new valuation is lower than the existing valuation, then will the shortfall I have to pay be an expense toward the income from other property portfolio?
This shortfall is loan repayment and cannot be considered loss or expense because you have not actually sold the property. For example, you have an interest only mortgage loan of £100,000. After 10 years, the loan term is finished and you have to renew the loan or go to another lender. Now the property value is reduced and consequently, you can get a loan of only £90,000. You have to pay back £10,000 to the bank. This is a loan repayment. It is not a loss neither an expense.