Question on Fine Gael Stamp Duty policy

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ice

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Hi

Can anyone clarify this for me.

Fine Gael have outlined their policy on stamp duty here
[broken link removed]

If I am a first time buyer and want to buy a house over 450,000 (lets say 600,000). Do I pay 5% on everything above 100,000 OR do I only pay 5% on the portion over 450,000......ie on 150,000.

Thanks
 
On my reading, it will only be the portion over the 450k threshold otherwise why state:

Making stamp duty fairer so that you only pay the higher rate on the portion of the price over EACH threshold and not on the entire purchase price but I understand your confusion.
 
My understanding is that you would only pay the higher rate on the excess so in your example the stamp payable would be €13,500.
 
Thanks for that.....I am still not sure though. It says the following on their site

the first €100,000 is zero rated, the next €350,000 is paid at 5% and the balance is charged at 9%. This means that major savings are made on stamp duty costs at each house price level.

But as I am a FTB do I have to pay 0% on the first 100,000 and then 5% on the next 350,000....or do I pay nothing until after 450,000. Its not really clear from their website.
 
Both FG and Labour are proposing to apply each percentage only on the proportion above the relevant threshold...in short good for the punter! (still won't get my vote though)
Seriously though, you can see why this is stagnating the property market...why buy now when in a matter of weeks you should save thousands no matter what type of buyer you are.
What I don't understand is why the government didn't act on this last week? They get the credit, torpedo one of the oppositions main policies and stop the uncertainty in the market...worth accusations of auction politics and buying the electorate I'd say.
 
ice said:
Thanks for that.....I am still not sure though. It says the following on their site

the first €100,000 is zero rated, the next €350,000 is paid at 5% and the balance is charged at 9%. This means that major savings are made on stamp duty costs at each house price level.

But as I am a FTB do I have to pay 0% on the first 100,000 and then 5% on the next 350,000....or do I pay nothing until after 450,000. Its not really clear from their website.
Click to expand...

Nothing until after €450K
 
Thanks for that....I hope I am not breaking the no talking about property rules but do you think that if stamp duty is reduced that it will just go to the vendor....

Also if Fine Gael/ Labour get in when will the stamp duty changes take effect ?

Last question :) ...if I go sale agreed this week and there are changes after the election how long will they take to come into effect ? ie will I get the benifit of any changes ?

Thanks a mill
 
I do think it'll go to the vendor...think about it, suddenly €450,000 becomes a barrier of sorts. Anytime buyers get more buying power prices go up.
On your own query, it's hard to know. I'd imagine if you went sale agreed now the old regime would still apply on completion. It won't happen overnight.
 
Is it not true that the stamp duty will only be dealt with in the next budget whoever is in government or have they said they will do it straight away ? seems vague to me ,BUT ITS A FAIR SYSTEM that only charges on the ammount above the threshold not revert to the whole lot .has everybody forgot about the other issues ? childcare ,state of our schools etc.
 
ice said:
Hi

Can anyone clarify this for me.

Fine Gael have outlined their policy on stamp duty here
[broken link removed]

If I am a first time buyer and want to buy a house over 450,000 (lets say 600,000). Do I pay 5% on everything above 100,000 OR do I only pay 5% on the portion over 450,000......ie on 150,000.

Thanks
Click to expand...

It must be remembered that their SD proposal as stated here [broken link removed] is among another 55 pages of proposals, which will take about 20 years of Dail work to implement them all.

I also don't think any of the parties are looking to specifically assist the FTB who are buying houses in excess of 450,000 so don't be surprised if (when and if in power) they abolish the SD up to 450,000 and then phase in the other proposals over a number of years, if at all.
 
setemupjoe said:
Is it not true that the stamp duty will only be dealt with in the next budget whoever is in government or have they said they will do it straight away ? seems vague to me ,BUT ITS A FAIR SYSTEM that only charges on the ammount above the threshold not revert to the whole lot .has everybody forgot about the other issues ? childcare ,state of our schools etc.
Click to expand...

Straight away seems to be the consensus among all the parties...FG/Labour had a slight difference of opinion on whether to do it all in one go or phase it in. Now they're all suggesting immediate action is what's called for, even FF who until recently seemed to want to preserve the status quo.
 
KalEl said:
I'd imagine if you went sale agreed now the old regime would still apply on completion.
Click to expand...

Not so sure on this: I would have thought stamp duty payable would be based on either a) when contracts or signed or b) the closing date of the sale......

Anyone got clarification?
 
DeBarr said:
Not so sure on this: I would have thought stamp duty payable would be based on either a) when contracts or signed or b) the closing date of the sale......

Anyone got clarification?
Click to expand...

I meant if you went sale agreed now the sale would be completely done and dusted before any changes took place.
As it's a charge for the stamping of deed documents the closing must be the relevant date.
 
davidoco said:
It must be remembered that their SD proposal as stated here [broken link removed] is among another 55 pages of proposals, which will take about 20 years of Dail work to implement them all.
Click to expand...

I don't understand this. The annual Finance Act runs to hundreds of pages and takes only a few weeks to pass through both houses of the oireachtas.

See 2000 FA example here, extending to 304 pages http://www.finance.irlgov.ie/documents/publications/legi/fnact00.pdf

setemupjoe said:
Is it not true that the stamp duty will only be dealt with in the next budget whoever is in government or have they said they will do it straight away?
Click to expand...
Any govt can implement a stamp duty change overnight at any time of the year if they wish. There is nothing forcing them to wait until the Budget.
 
As far as I know Fine Gael said they would implement any stamp duty changes immediately so as to stabilize the market....

That’s why I was thinking if we went sale agreed in two weeks and closed end of June we might be OK

Thats assuming Fine Gael get in ;)
 
ice said:
As far as I know Fine Gael said they would implement any stamp duty changes immediately so as to stabilize the market....

That’s why I was thinking if we went sale agreed in two weeks and closed end of June we might be OK

Thats assuming Fine Gael get in ;)
Click to expand...

Certainly when the first time buyers grant was abolished people who's signed contracts but not closed still received their money (I know because I did!)
You'd have to think the government of the day would dictate when it kicked in. If it were immediate then if you hadn't closed on the sale you'd pay at the new lower rates or not at all depending on your status.
I'd find it hard to buy now given I should have more purchasing power in a few weeks time...however an alternate view would be to strike now during the uncertainty, get a bargain perhaps finding a vendor desperate to sell?
Irresponsible from all of the parties though...uncertainty does not help anyone.
 
ubiquitous said:
I don't understand this. The annual Finance Act runs to hundreds of pages and takes only a few weeks to pass through both houses of the oireachtas.

See 2000 FA example here, extending to 304 pages http://www.finance.irlgov.ie/documents/publications/legi/fnact00.pdf
Click to expand...

298 pages large text (last 6 are blank) of Budget amendments and substitutions cannot be compared to one paragraph of the Fine Gael policy. For example the "Better Health" agenda contains an example of an additional 2,300 beds that would take a minimum of 2 or 3 years to implement with the best will in the world.
 
But introducing extra hospital beds would hardly require a minute of Dail time, given that it is presumably just a matter of increasing the appropriate funding to the HSE?
 
davidoco said:
298 pages large text (last 6 are blank) of Budget amendments and substitutions cannot be compared to one paragraph of the Fine Gael policy. For example the "Better Health" agenda contains an example of an additional 2,300 beds that would take a minimum of 2 or 3 years to implement with the best will in the world.
Click to expand...

Yes but all the (relevant) parties are committed to addressing Stamp Duty immediately. Vague promises about hospital beds and gardai cannot be compared to a tax which can be amended or abolished at the stroke of a pen.
 
We’re talking 100s of millions here when it comes to SD or hospital beds and that money has to come from somewhere. The government (whoever is in power) can’t just go filling election promises on a whim without looking at saving somewhere else. This country has to be run on a budget much like most households so a spending spree now without proper planning or just because it would be the populous thing to do might be detrimental to us all in the long run.
 
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