Interest on Stamp Duty Clawback

S

siouxsie

Guest
I bought a house for €209,000 in 2003 as a first time buyer owner occupier so paid no stamp duty. At the time I had every intention of living in it for 5 years, but my circumstances changed and I moved out in March 2005 and started renting it out. I wasn't aware at the time of the stamp duty clawback and have only recently discovered that I am liable.

Is stamp duty liable on the full amount using current stamp duty rates, or rates at the time of purchase. As I've only found out I am liable if I contact the revenue to pay stamp duty do I also have to pay interest, and how much is the interest?
 
Do a search in this forum for "clawback" and you will get all answers you are looking for as this topic is regularly covered (not trying to be smart, just trying help)
 
Stamp duty at time of purchase.
I rang up recently and was told the interest rate was 0.0273% per day.
However the figure on the web site is slightly different, so I don't know which one is accurate.

I'm in a similar situation and am in the middle of trying to pay the stamp duty. They require a copy of the deed and contract of sale to process the payment, which you have to get from the building society or bank. My building society won't provide a copy to me, I have to get my solicitor to officially request them. They will send them to my solicitor, he will photocopy them and send them back. Will cost me about 60 euros I think. Sounds daft but there you go, you will probably have the same problem unless your mortgage institution is more helpful!
 
It is the rate and limits for 2003 which apply. Interest at the rate of 0.0273% per day will apply for the date of purchase.

Unfortunatley you will be required to get the solicitor to take out the deeds as they provide an undertaking to the bank not to sell the property and yes it costs about 60euro
 
Ned_ie said:
It is the rate and limits for 2003 which apply. Interest at the rate of 0.0273% per day will apply for the date of purchase.
Click to expand...

Does this hold true?

I would have thought that interest would apply from the date that the property was first rented, i.e. the date on which the stamp duty became due and payable.

It is calculated as at the date of purchase, but payable from the date of renting, so it would seem unusual/unfair that interest would be calculated from before the tax became payable?
 
OOps my bad - meant to say from date of rent first received- CCovich you are completely correct.
 
Thanks for your comments, makes more sense now. Basically, there goes a good whack of my SSIA, and I have to pay my solicitor for the privilege of paying stamp duty to revenue!!! :mad:
 
''interest rate was 0.0273% per day''

Is this on the SD due? So lets say you need to pay 10,000. You also need to pay .0273% of this 10k for each day rented?
 
corco2000 said:
''interest rate was 0.0273% per day''

Is this on the SD due? So lets say you need to pay 10,000. You also need to pay .0273% of this 10k for each day rented?
Click to expand...

As far as I know that is the case. So in that example it would be 2.73 euros a day. That's going to add up pretty fast, as I know to my cost.

The Stamping Office sent me out an offical form to fill in to process the payment. This is exactly what it says on the bottom of the form..

"Interest is chargeable at the rate of 0.0273% per day from 1 April 2005 (0.0322% per day from 1 September 2002 until 31 March 2005 and 1% per month prior to 1 September 2002) from the date the payment (i.e rent or payment in the nature of rent) is first received to the date the amount of clawback is remitted."
 
Out of curiousity, is the interest "capitalized" every day ?
For example
Day 1: 10,000.00 @ 0.0273% = 2.7300 --> 10,002.7300
Day 2: 10,002.73 @ 0.0273% = 2.7307 --> 10,005.4607
etc....
Note: over a period of 365 days and for €10k, it would just make a difference of €51.86.
 
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