Claw back of stamp duty for first-time purchasers and other owner occupiers

Brendan Burgess

Brendan Burgess

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Claw-back of Relief for First-time Purchasers and other Owner-Occupiers

An exemption from Stamp Duty is generally available for first-time owner-occupying purchasers of new or second-hand dwelling houses or apartments. There is also an exemption available for other owner-occupying purchasers of new dwelling houses or apartments under 125m2. In addition, partial relief is also available to owner-occupying purchasers of new dwelling houses or apartments over 125m2. These exemptions/reliefs are clawed-back where the purchaser rents out the dwelling house or apartment, other than under rent-a-room arrangements, within 5 years of the date of the deed of transfer giving effect to the purchase.
This claw-back period is being reduced for all three reliefs from 5 to 2 years for deeds of transfer executed on, or after, 5 December 2007. For deeds of transfer executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on, or after, 5 December 2007, it will not involve a claw-back of relief where this happens in the third, fourth or fifth year of ownership.
 
Is there such thing as claw back on your FTB mortgage interest relief? If I've been getting FTB interest relief for 3 years at which point I rent out my apartment will I have to pay it all back?
 
No clawback but obviously you cannot continue to claim it when you cease to be an owner occupier.
 
ClubMan said:
No clawback but obviously you cannot continue to claim it when you cease to be an owner occupier.
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If you rent out your property (bought as a first time buyer) and buy another property as owner occupier. Does your TRS transfer to the new mortgage?
 
If I bought a house in 2004 as a FTB and if I now rent it out, will I be liable to SD clawback
 
River said:
If you rent out your property (bought as a first time buyer) and buy another property as owner occupier. Does your TRS transfer to the new mortgage?
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In effect - yes. You can claim FTB rates of relief for 7 years in total and normal rates thereafter - on any owner occupier PPR mortgage/property. Obviously you can only have a at most a single PPR at any one time.
 
River said:
If you rent out your property (bought as a first time buyer) and buy another property as owner occupier. Does your TRS transfer to the new mortgage?
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Yes, but not automatically.

You'll have to notify Revenue of the change to the first property and submit a new TRS1 form. You'll also get the first time buyer levels of mortgage interest relief for the first seven years of house ownership*.

* not legally precise language, but that's more or less the effect - e.g. if you change the status of or sell your first house after two years, rent for a while, and then buy another house, you can claim the higher level of TRS for five years on the second house.

[yeah, what ClubMan said]
 
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Hey All.

I rented out my PPR after 2 years & 4 months of owning it. We paid €14k in August of this year to Revenue for the claw back.

Am I able to get any of this back now?

Cheers
 
ClubMan said:
Not by my reading of the first post.
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That's not how I read it Clubman - specifically the section stating "For deeds of transfer executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on, or after, 5 December 2007, it will not involve a claw-back of relief where this happens in the third, fourth or fifth year of ownership." seems to imply that in asdfg's case the rental is happeining in the 3rd or 4th year of ownership so no claw-back applies?

Sorry Clubman just on rereading I realise you were in agreement that no claw-back applies, my mistake!
 
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Lyndan said:
Hey All.

I rented out my PPR after 2 years & 4 months of owning it. We paid €14k in August of this year to Revenue for the claw back.

Am I able to get any of this back now?

Cheers
Click to expand...
Unfortunately not. It looks as though any refunds available will be confined to claw-back / stamp duty paid only from November.

Hard luck - it's always tough to be one of those that just misses out...
 
I actually feel sick!! If we had kept the apartment empty for 4 months then all would be fine..

:(
 
i signed for my apartment in feb 2007 and am a FTB, does this mean i just have to wait till feb 2009 before i cant rent it out before having to pay the stamp duty?

id just like this clarified

thanks
 
jigsaw said:
i signed for my apartment in feb 2007 and am a FTB, does this mean i just have to wait till feb 2009 before i cant rent it out before having to pay the stamp duty?
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The date the clock starts ticking from, AFAIK, is the close of the purchase not the initial signing. So be careful not to confuse the two.

If you "closed" the purchase in Feb '07 then you can rent out the apartment in Feb '09 without a SD clawback.
 
yes i closed in feb 07 mate, so feb 09 and im good to go?

thx for the reply

jigsaw
 
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