Claw back

[sambuca1]

1.I was a first time buyer who bought a second hand property in Feb 2003 and as such I was not liable to pay stamp duty. Last year (July)my partner and I bought a new house together and this became my PPR. Am I wrong in thinking that there was a 12 month "grace period" to allow me the sell what is now considered an investment property.
2.Also what are the penalties etc in non payment of this claw back stamp duty. I believe I must pay in the reigon of €5400.
3. Finally can I claim money back against the clawback for improvements I have made to the house - Paint / Wooden Floors etc
Thanks in advance for any advice offered

 

[ClubMan]

1.I was a first time buyer who bought a second hand property in Feb 2003 and as such I was not liable to pay stamp duty.

Do you mean that it was under the relevant exemption threshold for a first time buyer of a second hand house at the time?

Am I wrong in thinking that there was a 12 month "grace period" to allow me the sell what is now considered an investment property.

No you are not wrong. You have up to 12 months to sell a former PPR before it becomes an investment propertybefore Capital Gains Tax becomes an issue. The clawback of stamp duty only applies if you rent out a property originally bought as a PPR within five years of purchase. Has the property been rented since you moved to your new PPR? If it has been then the stamp duty clawback applies regardless - i.e. the 12 month "grace period" is irrelevant to the stamp duty clawback as far as I know (but am open to correction on this).

2.Also what are the penalties etc in non payment of this claw back stamp duty. I believe I must pay in the reigon of €5400.

I'm not sure what penalties apply. If the clawback applies in this situation and you owe the money then the sooner your discharge this liability the better.

3. Finally can I claim money back against the clawback for improvements I have made to the house - Paint / Wooden Floors etc

No - it is not possible to mitigate the stamp duty clawback if it is owed. You can offset allowable improvement costs against any capital gain when it comes to selling the former PPR/now investment property in order to reduce you CGT liability.

 

[sambuca1]

I still live in the property during the week and have had 2 rooms rented out under the rent a room scheme so I'm not really sure how this is viewed with regards to claw back. The rent I am taking in is less thatn that allowed as far as I know

 

[ClubMan]

Your original post suggested that the new house bought jointly with your partner is now your PPR. Is this not the case? Are you planning to move to the jointly purchased propery as your PPR imminently? Is the apartment still your PPR? If so then what are you planning to do with the apartment? If you continue to rent it after it ceases to be your PPR then the stamp duty clawback will apply, you can no longer avail of the rent a room scheme and the normal rental/investment rules will apply. If you sell it within 12 months of quitting it as your PPR then no CGT will apply. If you hang onto it for more than 12 months after quitting it as your PPR then CGT will be charged on a portion of the eventual resale gain. If in doubt get independent, professional advice on the tax and investment issues involved.