Stamp Duty

[Jimmy Bond]

I intend to purchase a second house as a long term investment / holiday home - price €340K. The house will not be my PPR. Do I need to pay the full rate of stamp duty or is there any way to reduce the amount payable?

 

[Howitzer]

1. Yes you do.

2. Reduce the price you pay for the property

 

[bazermc]

is there any way to reduce the amount payable?

Ensure the contents are not part of the contract as they are not stampable

 

[Jimmy Bond]

Does it make any difference on the stamp duty payable if the house is newly constructed? -ready by October 2006.

 

[Sherman]

No, you'll be treated as an investor by the Revenue as it won't be your PPR.

 

[ARCH]

It will make a differenceif the property is a newbuild, in that Stamp duty for a new house will be on the net of VAT cost.
On a sechondhand house stampduty will likely be on the full proceeds

 

[bazermc]

It will make a differenceif the property is a newbuild, in that Stamp duty for a new house will be on the net of VAT cost.
On a sechondhand house stampduty will likely be on the full proceeds

Fair enough but most second hand homes will not have a VAT liability on top of the price. So it does not make a difference!

 

[nt00deep]

Fair enough but most second hand homes will not have a VAT liability on top of the price. So it does not make a difference!

For a new and 2nd hand house of the same price, the price of the new house already includes a VAT element and the stamp duty will be payable on the price less VAT, so it does make a difference.

 

[Jimmy Bond]

Taking into account the VAT on an new house, how much stamp duty will I have to pay on the purchase price of €340K (allowing for the VAT reduction).

 

[nt00deep]

The ex-VAT value would be just shy of 300k (340 / 1.135) I believe, so you would drop to the 5% bracket (although not sure if VAT would have been payable on the value of the land, so the reduction due to excluding VAT may be less).