Stamp Duty liability

D

deccoo

Guest
Hi, I do not own any property in Ireland, but I am hoping to buy a house soon. I own 50% of an apartment in Budapest, so I don't qualify as a first time buyer because of this. I'm wondering if I buy a new house less that 125 sq meters, and if I live in that house, will I be liable to pay stamp duty, or is this just applicable to first time buyers? I have received conflicting information in relation to this, so any help is much appreciated. Thank!
 
As I understand it if you buy a new house under 125 as your own residence you are not liable for stamp duty whether or not you are a first time buyer!

D
 
Who have you received conflicting information from?

Here's the Revenue rule for new Houses and Apartments:

Under Floor Area of 125 sq. m

New houses or apartments which are purchased by an owner occupier (including a first-time buyer) where there exists a valid floor area compliance certificate issued by the http://www.environ.ie/ (Department of Environment and Local Government) stating that the total floor area of the house/apartment does not exceed 125 square metres are exempt, subject to clawback.

Purchasers of houses/apartments under 125 sq. m which do not have a valid Floor Area Compliance Certificate will not be eligible for relief from stamp duty.

Over Floor Area of 125 sq. m

New houses or apartments which are purchased by an owner occupier (including a first time buyer) where the total floor area exceeds 125 square metres are charged with duty, at the appropriate residential property rate as per the table above, on the site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback.The size of the floor area must be certified by a qualified architect, engineer or surveyor
 
CCOVICH said:
or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback.
Click to expand...

Does this refer to self build houses as well?.
And if so does the value relate to the market price or cost price of build plus site?.
Thanks
 
I thought I wouldn't be liable for stamp duty either, but an auctioneer I spoke to felt that it was only applicable to first time buyers, and he said that I would have to pay stamp duty.
 
Auctioneers are no authority on Stamp Duty (nor am I, but I am quoting from the Revenue website). What they 'feel' is neither here nor there. Speak to your solicitor or Revenue for confirmation.
 
The site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT)
Click to expand...
What is the difference between Site Value and the Total Value of the house.
Where do you get the site value from? How will the revene know what the size of my home?
 
Hi,

My understanding that the site value sometimes are alot more expensive than the house build on it.
Example: Site A..1million house build 200K
1/4 of that is only 300,000
So you have to pay stamp duty on the site value

Example B: Site value is 40K, House build 200K
A quarter of this 60K
So you have to pay stamp duty on 60K.
Thats my take on it.

I'm sure someone will correct me if this reasoning is wrong
 
Thnx for the explanation but I didn't get it.

Lets say, in my case I am buying a for €400 000 and its size is above the 125sq mt so how much am I liable to pay stamp duty?

I am not a first time buyer but this house will be my PPR (Principal Private Residence).

Best Regards
Chunky ...
 
Hi
If your buying a house above 125sq metre and not a first time buyer then you pay on 400K stamp duty at the 7.5% rate. See below:

Rates of
Duty for
Residential Property
The rates of duty applicable for residential property (whether new or second-hand) are as follows:


Aggregate ConsiderationFirst Time Buyer Rate
Full Rate Less than €127,000 ExemptExempt€127,001 - €190,500Exempt3%€190,501 - €254,000Exempt4%€254,001 - €317,500Exempt5%€317,501 - €381,0003%6%€381,001 - €635,0006%7.5%Over €635,0009%9%

N.B. The Rates above apply to the entire consideration or value of the property, e.g. :

(a) Where the consideration for a property is €150,000 (and the purchaser is not a first-time buyer) the stamp duty liability would be €4,500 (€150,000 @ 3%)



(b) Where the consideration for a property is €350,000 (and the purchaser is not a first time buyer) the stamp duty liability would be €21,000 (€350,000 @ 6%)

(c) Where the consideration for a property is €350,000 and the purchaser is a first time buyer the stamp duty liability would be €10,500 (€350,000 @ 3%)




Spoke to stamp duty dept. at the revenues today in cork: If you are building a house then it doesn't matter whether your first/second time buyer.
The auctioneer/estate agent values the market price of your house (and if required a surveyor/equivalent certifiies it if its under 125sq metre as under 125sq metres is exempt -- see above - need a cert).

ABOVE 125sq metres
The revenue requires the market price of your house - site plus house.
Say you get the house valued at 600K then you pay stamp duty on 1/4 of it - 150k which means stamp duty at 3% from above table.
However if your house is valued at 500K then 1/4 is 125k which is exempt from above table.

This is all based on the fact that you are owner occupier - main residence etc.

When speaking with the revenue they refer to the market price of the property as conderisation and the amount payable as the considersation charge. The above figures have been copied from the revenue site.

This is what I understand.HTH
 
Still not sure how you derived 400K stamp duty at the 7.5% rate?

The site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater.
So i my case it should be 400000 * 1/4 * 7.5% .... right? I know am very confused.

Thanks for the explanation anyway...

Best Regards
Chunky ...
 
ChunkyLover said:
Where do you get the site value from? How will the revene know what the size of my home?
Click to expand...


As per my post above from the Revenue website:

The size of the floor area must be certified by a qualified architect, engineer or surveyor
 
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