Stamp Duty Confusion!?!

Good Morning,

Currently trading up and purchasing new home for €490k. In the contract the site price is at €140k.
We will be selling current property and moving into new (owner/occupier). I have budgeted for stamp duty of 7.5% of €490k = €36,750.
However I have been speaking to some people and they said this is incorrect. I am currently trying to resolve this with my solicitor, but if anyone knows what stamp duty I should be paying I would be very grateful.

Many Thanks

Stamp duty for a 2nd hand home purchased for anything between €381,001 - €635,000 is 7.5% so it would appear that you're correct.

I'm not sure what the relevence of the site cost is. Is the site separate to the house - as in is there a site that's coming with the house and is costing you €140,000 on top of the €490,000?

Is the house more than 125sqm?

Apologies,

Yes the house is > 125sqm.
The relevance of site cost is that I was informed that I should pay stamp duty on the greater of; site cost or 25% of building costs less VAT?

See for a summary of the SD rules for new houses over 125sqm.

Sheedy11 said:

Good Morning,

Currently trading up and purchasing new home for €490k. In the contract the site price is at €140k.......

Many Thanks

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I'd say you will pay 3% [€127,001 - €190,500], based on the rule regarding the "Chargable Consideration" . €4200 should cover you, which is a lot better than the €36k+ you have budgeted for.

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...

Thanks Clubman & Irishpancake.

Yeah it looks 3% on €490k = €14,700
Rather than the 7.5% on €490k = €36,750
A nice reduction of €22,050 required on new mortgage

Will discuss this with my solicitor.

Thanks again

Think Irishpancake has this correct above. You are gonna pay stamp duty at full rate on either site value or 25% of building works.

Therefore site value is €140,000 - 25% of building works (even without taking vat out) is €87,500 (i.e. 25% of €350,000). Therefore the site value is greater at €140,000-00 -

stamp duty payable for owner/occupier on €140,000 is @ 3% = €4200-00!

Go treat yourself to a lovely house warming gift

Does this calculation also apply to the purchase of an estate house i.e. do you value the site on which the house is built and then work the calculation as above??

mickeyg said:

Does this calculation also apply to the purchase of an estate house i.e. do you value the site on which the house is built and then work the calculation as above??

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If :-

1. the property is new and there is a contract for site and building agreement in existence
2. the house is greater than 125 sq m
3. you are an owner/occupier

then yes this is the way it is calculated.

Aimee said:

If :-

1. the property is new and there is a contract for site and building agreement in existence
2. the house is greater than 125 sq m
3. you are an owner/occupier

then yes this is the way it is calculated.

Click to expand...

The house that I have just put a deposit on is all of the above but my query is does this calculation also work if you are not an owner/ occupier?
Not sure yet whether we'll be owner/occupiers?! But contract splits site & building costs....

"The house that I have just put a deposit on is all of the above but my query is does this calculation also work if you are not an owner/ occupier?"

No. If you're not an owner occupier and not a first time buyer, you are an investor, and pay stamp duty on the full consideration - less the VAT element of 13.5% which normally only applies on the building agreement.

mf