Irish Stamp Duty

[Mahonj]

Hi, I purchased a property in Oct 2002, this was exempt from stamp duty as i was a first time buyer, however one of the conditions was that you remain in the property for 5 years, which in my case would be Oct 2007. Can you advise what penalty I would face if I did not remain in the property until this date, the property cost EUR 370,000, can you advise if I would face a full penalty or would this be pro rata for the period which I broke the condition ( Feb 07-Oct 07). Thanks

 

[Vanilla]

What are you going to do- rent or sell?

 

[Mahonj]

I plan to rent.

 

[Howitzer]

Full.

 

[liteweight]

Not only will you pay in full, you'll also pay investor's rate of stamp.

 

[Stags Head]

How will the revenue know what you do with it?

 

[Mahonj]

Hi

I don't exactly know how the Revenue would find out, but I'd like to consider the implications if they did. Tenants can apply for Rent Allowance so I guess this is one way.

 

[bacchus]

How will the revenue know what you do with it?

* because owner has to register with PRTB in order to be able offset mortage interest from rental income
* because tenants will claim rent relief

 

[Art]

You would be better off to leave it vacant as the stamp duty clawback on this will be €18.5k, unless of course you would expect to get more than this in rent in the intervening period.