Stamp Duty Calculation : How to calculate "Chargeable Consideration"?

B

ButtermilkJa

Registered User
Messages
660
From Oasis Website...
If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.
Click to expand...
Basically, what rate of VAT is charged here? If the house is €450,000, and 25% is €112,500, how much do you take off for VAT? I presume the SD rate then is 7.5% of this remaining figure for a second-time buyer?

Also, how do you find out the cost of the site? I've a funny feeling this could be more than 25% in some parts of Dublin and I don't want to get hit with a larger than expected SD rate.

Thanks!
 
You need to find out the value of the site only. The builder or estate agent should be able to tell you. You then deduct the value of the site from 450K. This is considered the building cost inclusive of vat. You then deduct the vat.
Lets asume the value of the site is 100k
Building cost is 350K including vat - 308.37K excl Vat
Stamp duty is therefore based on cost of site 100K or
25% of 408.37K (100+308.37)= 102.09K
As 102.09 is greater, this is the figure that stamp duty is based on
As this figure is less than 127K no stamp duty is payable

Hope this make sense
 
Ok, cool, that makes sense. So are you saying that if the 'Chargeable Consideration' is less than €127k then it's exempt? If so that's excellent news.

It makes sense now that I read it back again. I was sure I would have to pay something in SD.

Cheers!
 
Hi,

While you can find out the site value, usually the consideration gives a higher value upon which the Sd is calculated upon. For a 450,000 house/apt which is a new build and over 125 sq M, the calculation would be:

450,000 less VAT @ 13.5% (53,524) = 396,476

Divide by 4 (to get 25%) = 91,119

As it's under 127,000 it is SD exempt.

If you do get the site value and its higher than the 91,119, the SD (if any) is calculated against this.
 
is there a further stipulation here in that the builder must provide a floor area certificate to verify the exact size of house, otherwise a buyer will have to pay SD regardless of whether or not the chargeable consideration is less than €127k?
 
Solicitor would request an Architects Certificate on closing stating that it is in excess of 125 sqM, doesn't have to state exact size. There would also be a Revenue Certificate within the Deed stating that such a certificate exists.

I wouldn't close the sale without this and I wouldn't take an undertaking regarding same on closing either.
 
Who is qualified to provide an Architect's Certificate? Is anybody other than an architect qualified to do so?
 
You must log in or register to reply here.
Back
Top