Property purchase as main or second home

[cyclist1]

Hi, I live in Scotland and I am in the process of purchasing a property which was originally a flat above a row of shops but has been used for the past 20+ years as a commercial office. It is currently vacant and my intention is to convert it back to a private residence. To do this will require extensive renovation work.
To make the purchase I will either, (a) sell my main (only) home and fund it through the proceeds of the sale, or (b) keep my home and fund it through savings I have accrued . My taxation related queries are:
1. I am aware that if I follow route (b) will I have to pay LBTT (Stamp Duty) bearing in mind that the property is currently a commercial office not a private residence?
2. Presumably I will have to pay vat on the work I get done and on the materials etc. that I purchase. I understand that I can reclaim this if follow route (a). Can I still make a reclaim if I follow route (b)? At what rate will I have to pay vat, 20% or 5% or what?
3. If I follow route (b) and then sell the renovated flat post completion am I liable for CGT on any profit I make? If so, what rate would I pay? I am aged 61 and retired but have no pension (or other) income until I reach 65.
4. If I rent out the renovated flat is it correct that I am liable for income tax on any rental income above the personal allowance threshold?
Many thanks

[bd6759]

1. Yes. LBTT is payable.

2. Vat is payable. It can be reclaimed if the project is for your home. That would not be the case in the event of 3. or 4.

3. Either CGT or income tax will be payable of the gain or profit. It depends on the circumstances.

4. Yes, the profits are taxable.

[cyclist1]

Many thanks for your response bd6759.

Re point 2, (vat) so, for clarity, if I renovate the new property then move into it and rent out my current home I would be able to reclaim vat on the renovation costs, is this correct? At what rate is vat payable? I had heard 5% but can't find substantiation of this.

Kind regards

cyclist1

[bd6759]

https://www.google.co.uk/search?q=vat+reclaim+renovation&oq=vat+reclaim

[cyclist1]

Hi. If I renovate the new property, move into it and then sell my main home, is there any tax to pay on the sale of my main home or would tax (CGT?) only be payable on any profit made on a subsequent sale of the new property?

Thanks

[bd6759]

You do not pay CGT on any profit or gain derived from selling a dwelling that has been your only or main residence throughout the period of owership.

[cyclist1]

Thank you bd6759.