Stamp Duty Charge on buying out a friend

Hi,

My friend is currently in the process of moving house and will have to buy out his friend who owns the apartment they jointly share as PPR.

He is buying a new house for circa €500k and will be using this as his PPR.

He will then be buying out his joint owner of the apt. They purchased the apt for €200k and it is now worth €250k. He intends to rent this out afterwards

Will he have to pay stamp duty on the buyout of the apartment? He has lived in it for 3 years

OK - that is quite complex.

He is doing two things - he is purchasing a one half share in an investment property and he is buying a new PPR. ( I am assuming that when you say a new house, you are referring to a new build?)

There is no stamp duty on the purchase of a property worth less than 125K so it is possible that he will pay no stamp duty on the buyout of the apartment. He will need to get a valuation for Revenue if he is claiming the value to be below 125K. Revenue are desperate for money at the moment and I find that anything I am submitting is being queried.

So long as the new house is a new build and below 125sq. m , and he is a bona fides owner occupier, he will not have any stamp duty. If its not a new build or he is an investor, he may have stamp duty liabilities.

A good starting point is Revenue Stamp Duty Guidelines - SD10A- downloadable from Revenue website.

mf