Liable for Stamp Duty after renting your house

[ktb]

Hi, I bought a house as a first time buyer/ owner occupier last year. Unfortunately I had to return home for a year due to personal circumstances and I rented my house for 12 months. It is my one and only residence and I am now living back in it. I hear that if you let your house anytime within 5 years of buying it you are liable to pay the "investor" rate of stamp duty instead! This is ridiculous! how about people who buy a house and then go travelling for a few months and let it out, or couple's who split up and need to rent it out.. The government is supposed to be aiding first time buyers in buying their first homes, but if they leave it for any portion of time (i.e. travelling) they get kicked into the investor bracket! It would be different if a person bought 10 houses and put them in all their children's name to avail of the lower rate!

Could someone please tell me if I am correct and if the revenue have any exceptions to the rule?

Thanks

 

[ClubMan]

I hear that if you let your house anytime within 5 years of buying it you are liable to pay the "investor" rate of stamp duty instead!

Correct - the clawback of SD at investor rates applies once you have rented out a property originally purchased as an owner occupied PPR within 5 years of purchase.

This is ridiculous!

It's not - it's to prevent people who are actually investors (even for a period of time) buying as ostensible owner occupiers just to avoid SD.

how about people who buy a house and then go travelling for a few months and let it out, or couple's who split up and need to rent it out.. The government is supposed to be aiding first time buyers in buying their first homes, but if they leave it for any portion of time (i.e. travelling) they get kicked into the investor bracket! It would be different if a person bought 10 houses and put them in all their children's name to avail of the lower rate!

Please take rants about this stuff to Letting Off Steam.

Could someone please tell me if I am correct and if the revenue have any exceptions to the rule?

There are some exceptions whereby going abroad does not jeopardise one's PPR status but if you have rented the property out and, in particular, if you have received more than €7,620 p.a. rent then such exceptions are most likely irrelevant here and you are liable for the SD clawback from the date on which the property was first rented out.

 

[CCOVICH]

This issue is discussed at great length in this thread.

On the technicalties of how much you owe, there are many other threads you should read.