First time buyers and stamp duty claw back.

M

MonkeeMan

Registered User
Messages
31
Hi,
In Nov 2002 I bought my PPR (€221k) and received the FTB grant and paid no stamp duty. Two years ago I signed for an apartment to move into as owner occupier (paying no Stamp duty). This apartment was delayed by 18 months and is only now ready to close. With interest rates increasing I can no longer afford to keep both properties so I want to sell the apartment in a few months.
If I move in to the apartment as an owner occupier until I sell it and leave the original house empty will I have to pay claw back of FTB grant and stamp duty relevant to the original time. It seems crazy to rent the house before the 5 year timeframe for renting expires in Nov if I am going to have to pay over eight or nine grand to the government.

Also can anyone remember how much the FTB grant was (I think equilevant of IR£3000, but not sure) , also what was the stamp duty for investors a 221k euro back in 2002.

Who looks after claw back for the FTB grant, and was the claw back time fame 5 years or something less?

Any advice welcome
 
The SD clawback only applies if you rent out a property originally purchased as an owner occupied PPR within 5 years of purchase. If you can avoid renting out until the 5 year period has elapsed. However you say that you cannot afford both properties and want to sell the first so I don't understand why SD clawback concerns you at all? If the SD clawback applies then the onus is on the individual to declare and pay this. But see here while you're at it:

Revenue acts on abuse of stamp duty relief

Remember that there are other tax and related issues that arise if you become a landlord:

Property Investment FAQ

Before becoming a casual/accidental landlord get independent, professional advice.

There is no FTB grant clawback as far as I know.
 
If someone bought a new apartment as a FTB as there PPR, and after a couple of years decided to rent the apartment out, would there be a SD clawback if the apartment was under 125sqm??
 
Istabraq1 said:
If someone bought a new apartment as a FTB as there PPR, and after a couple of years decided to rent the apartment out, would there be a SD clawback if the apartment was under 125sqm??
Click to expand...

Yes. The 125 sq. metre rule is only relevant for owner-occupiers.
 
Istabraq1 said:
If someone bought a new apartment as a FTB as there PPR, and after a couple of years decided to rent the apartment out, would there be a SD clawback if the apartment was under 125sqm??
Click to expand...
Yes - that's the whole point. If you benefit from owner occupier SD reductions or exemption on a purchase but then rent the property out within 5 years then the clawback applies and you pay the different between what an investor would have paid and what you actually paid (which could be zero).
 
Thanks for that Clubman -
I had originally planned on keeping both as investment properties and buying my “rest of my life” residence in the summer. Now I have to sell one property and my original PPR will be better to rent out in the long term – therefore I need to sell on the apartment when I go to buy the house in the summer. I just want to make sure I do it in the most tax effective way that I legally can. I can afford to pay the two mortgages in the short term but will have to sell before buying my final residence. I am aware of the risk of not being able to sell quickly and have taken this into account.

I am pretty sure that when FTPB grants were given out there was a seldom enforced clawback clause but cannot find any details of this on line.
 
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