Stamp Duty

[carlitos]

My wife bought an affordable house on her own before we married, were thinking of buying a bigger property. My question is can i still avail of my first time buyer intitlement for the new property? Also is it possible for her to keep her property even though it wont be her primary residence any longer?

 

[shanegl]

If she pays the clawback, yes.

 

[ClubMan]

Of course she can retain the property - but there may be tax implications. However .... SD clawback only applies if the rents the former PPR out within 5 years of purchase as an owner occupier.

 

[shanegl]

I was referring to the Affordable Housing clawback, sorry I didn't make that clear. I don't think there will be a SD issue here.

 

[ClubMan]

Ah - I see. Apologies for any confusion caused...

 

[Madangan]

There may be a stamp duty clawback if when your wife purchased it was in last 5 years AND she availed of a lower rate of stamp duty ie a first time buyer rate or an owner occupier rate at the time AND that house now ceases to be her principal private residence (which is the case if you are moving to the new house).
There is nothing preventing her retaining the property but you should consider not just stamp duty implications but also Capital gains tax -cgt. If the house has gone up in value since she bought then any profit on a sale now is tax free but if she holds onto it for a few years and then sold only a portion of the profit is tax free.This is usually offset by the additional gains made while property prices are rising as in last few years but if the market were to stagnate that would not be the case. Its really a question of balancing all the pros and cons.
My understanding is that you,in all likelihood ,will not be able to avail of FTB status now particularly if your wife is contributing directly or indirectly to the purchase

 

[ClubMan]

There may be a stamp duty clawback if when your wife purchased it was in last 5 years AND she availed of a lower rate of stamp duty ie a first time buyer rate or an owner occupier rate at the time AND that house now ceases to be her principal private residence (which is the case if you are moving to the new house).

AND she rents the property out. If she doesn't rent it out within the 5 years then no SD clawback applies.

 

[carlitos]

So I will not be able to purchase a future property with out paying stamp duty?

 

[ClubMan]

So I will not be able to purchase a future property with out paying stamp duty?

You mean if you are (jointly or individually) classed as a non FTB? In that case you are still not liable for SD on any new build under 125sqm or on a second hand house under €127K.

 

[carlitos]

There is talk of no sd for first time buyers to be brought in by this goverment no matter what size or price the property is. In that case does the fact that i'm married to a property owner disqualify me from this status wether buying individully or together?

 

[Madangan]

If you buy on your own and your spouse does not help finance it (even indirectly)then you may be able to avail of exemption for FTB,but this is a very technical area--your solicitor will advise you if you give all the details,if your wife is acquiring any interest in the property or if her name is on the mortgage or maybe just guaranteeing the mortgage or indirectly supplying some of the finance you will not be treated as an FTB.A few years ago the revenue even threatened to treat FtBs getting a genuine loan from their parents as non FTBs, you should go to www.revenue.ie, lot of useful info there.