When did they rent it out? The stamp duty clawback period was 5 years but changed to 2 years in the last budget. Under the clawback scheme a property originally purchased as an owner occupied PPR which is rented out within 2 (was 5) years of purchase means that the owner must pay the investor rate of stamp duty on the original purchase (net of any SD already paid id any)/Hi,
1st time buyer has to rent out apartment.
They don't live in it. They rent it out within five years of living in it say 4 and quarter years. What are they liable to?
The time limit is irrelevant here. Once a property ceases to be an owner occupied PPR one can no longer claim owner occupier mortgage interest relief.1. Losing the TRS
If the property is retained for more than 12 months after vacating it as a PPR then some portion of the total capital gain over the ownership period will be assessable for CGT.2. Paying Capital gains Tax
If it wasn't their principle private residence then they owe stamp duty (forget claw back).They don't live in it.
My reading of this was that the "They don't live in it" was tied to the hypothetical renting scenario.They don't live in it. They rent it out within five years of living in it say 4 and quarter years. What are they liable to?
My reading of this was that the "They don't live in it" was tied to the hypothetical renting scenario.
The second line would suggest the the person is vacating the property to rent it after having it as a PPR for 4 and 1/4 years.
Do people wonder there will be any change in this, in the next budget?You're probably right.
Change in what?!Do people wonder there will be any change in this, in the next budget?
No. But remember that the SD clawback period is 2 years and not 5 since Budget 2008 anyway.What happens if the place is no longer your PPR and you leave it unoccuppied i.e don't rent it out until the clawback expires which will be in 5 months time? Are you liable to Stamp duty charges then?