Can release of equity result in stamp duty again?

M

Michael

Guest
Hello, having cleared the mortgage on our home a few years back I recently borrowed 200K by releasing equity in our home to purchase an Investment property (1 Bed Apartment) in the UK. I may want to borrow more in the near future to purchase a second one? If the total release of equity exceeds the Stamp Duty Free Treshold for buying a house here (I think it's 255K) would I be liable to pay Stamp duty again on my own home due to the size of the two loans?

Second question, do I need to Register in Ireland as a Landlord before offsetting rent against interest or does this Registration only apply for Rented Properties in Ireland?

Thanks a lot. Michael.
 
As far as I know, mortgages in excess of €254,000 attract government stamp duty at €1 per €1,000 subject to a maximum of €630. So if you increase your equity release beyond 254K then I would expect to have to pay this.

Check with revenue, but I believe rental income from inside & outside the state is handled differently.
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I was in a similar situation recently and was told I would have to repay the stamp duty. I was only just over the 255 so ended up squeezing myself to fund 5K to bring the amount below the threshold and not to pay the stamp duty!

I agree it doesn't make sense as you've already paid stamp duty on the original amount and now if you release equity you'd have to pay again. I don't know why the stamp duty is not just based on the incremental amount.
 
Thanks for the helpful replies. Can anyone answer the second question:

Do I need to Register in Ireland as a Landlord (on a UK property)before offsetting rent against interest on a loan here or does this Registration only apply for Rented Properties in Ireland?
 
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