Calculate Stamp Duty for Land bought some 30 years ago but sale only closed now.

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regvw

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Hi all,

If one bough some lad 30 years ago and the sale only closed now, would one be liable to pay stamp duty, if so would it be on the current value or the price they paid for the land.

How do you calculate the stamp duty due .

I would apreciate any help I can get on this

Thanks
Reg
 
Re: Stamp Duty

Duty is paid on the market value at the date of the instrument transferring the property- should be therefore at todays market value assuming you are correct that the sale is only closing now.
 
Hi vanilla,
lucky for me I just found out you are incorrect in what you say. Stamp duty will be paid on the purchase price which was the market value at the time
 
Stamp Duty AFAIK is calculated on the "consideration".

Now if that is the sale price 30 years ago, there must be some mechanism the Revenue have concocted in the meantime to stop that kind of caper!
 
I dont understand what you mean "Kind of Caper", What benefit would anyone have in holding the sale up 30 years. The hold up was due to some unforseen circumstances that I am not going to go into here. Luckily this is going to be sorted now, Was worrying about the stamp duty tho
 
regvw said:
I dont understand what you mean "Kind of Caper", What benefit would anyone have in holding the sale up 30 years. The hold up was due to some unforseen circumstances that I am not going to go into here. Luckily this is going to be sorted now, Was worrying about the stamp duty tho
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Calm down, I meant no insult here.

A caper would be someone who deliberately postponed closing a sale so that the Stamp Duty would be based on an ancient sale price as opposed to a current one.

That's all. No need to eat me for saying that if the facility exists to reduce your Stamp Duty by postponing the sale, then many will do just that if they can, legally. Your case may be different, but would still fall within the "reducing" the SD bill cohort, if we were not aware that extenuating circumstances existed.

I still think there must be a mechanism where Revenue can sniff out genuine or dodgy cases. Something like the conveyance being "in escrow" or something where they can establish veracity.
 
Surely, a sale occurs when the land formally changes hands ? If money did not change hands until decades later at the same non-adjusted price then surely it could be seen as a gift or an interest free loan upon which tax should be paid ?


regvw said:
If one bough some lad 30 years ago and the sale only closed now,
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Doesn't that mean the purchaser bought it just now ? So the land title just changed now ? When did money change hands ?

I think you need to contact revenue as they are going to be highly suspicious of notification of a piece of land changing hands at well below the market value and will probably get back to you about it. [unless its NAMA ;) ]
 
HI Guys,
4th estate I did not mean to imply a tone of hostility in my last post. To answer the other question the money was paid out 30 years ago and is with the solicitors till now. In the rangle the people owed the money have not been paid yet and the probate was only granted this year. I think its easy to show there has been no ill dealings set up here
 
regvw said:
HI Guys,
the money was paid out 30 years ago and is with the solicitors till now. In the rangle the people owed the money have not been paid yet and the probate was only granted this year. I think its easy to show there has been no ill dealings set up here
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Could there be interest penalties on the Stamp Duty for the last thirty years??
 
I'm not sure Mary, I will just have to see how I go. I will let you all know how I get on
 
Hi just a note to say no stamp duty was required on this, so common sense prevailed
 
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