Stampduty Clawback

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dmullen

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Hi I am just wondering could anyone help me on the following please:

I purchased a house in July 2004 as a 1st time buyer for €215k. I wasn't charged stamp duty as the floor was under 125sqm. Now I am planning to buy an apartment for €280k with a friend(who is a 1st time buyer) and move into it, and rent out my house. The apartment is brand new & is under 125sqm. How much stamp duty will I pay on my house as the "Clawback Rule" will apply and will I have to pay stamp duty on the apartment?

Any help on this matter would be greatly appreciated!
 
dmullen said:
How much stamp duty will I pay on my house as the "Clawback Rule" will apply and will I have to pay stamp duty on the apartment?
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At today's rates €215K @ 4% = €8,600. I think the same rate applied in 2004 but you'd need to check.
 
New builds under 125 sq.mts. are not subject to stamp duty if you're an owner/occupier. When looking up the rates of stamp duty as per Clubman's suggestion above, don't forget that you will have to pay at an investor's rate. Although your friend is a FTB, you are not and under normal circumstance i.e. not a new build both parties have to be FTB in order to qualify for stamp duty exemption.
 
As far as I know, you calculate your stamp duty liability based on the vat exclusive price of the property not on the price you paid. VAT is charged at 13.5%, so your liability will be €215K/113.5 x 100 = €189,427 x 4%= €7577.
 
Apparently the requirement to pay back Stamp Duty ends after a certain period of time. Is this 5 Years? And is it 5 years from the point of signing the original contract for sale, or from date of close? Does anyone know?
 
If the a property originally purchased as an owner occupied PPR is rented out within 5 years of purchase then the SD clawback applies. If it is rented out after 5 years then no clawback applies. I presume the 5 years is calculated with respect to the date on which the purchase closed and the purchaser took beneficial ownership of the property.
 
Thanks for this. After 12 minutes on-hold for the Stamp Duty people, they semm to agree with you.
 
dmullen,
with regard to the purchase of the apartment; while you don't qualify as FTB for SD exemption your friend will qualify for the FTB rate of tax credit. I would check with TRS whether they can handle this or if your friend will have to claim this separatly.
 
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