Stamp Duty - Adding a non first time buyer to the deeds

[jackpete]

I purchased a house as a first time buyer last year. The house price was <€317500 so I wasn't liable for stamp duty.

My partner now wishes to have joint ownership of the property - she will contribute half the purchase price - and therefore both our names will be on the deeds.

What are the implications of this specifically with regard to stamp duty as she is not a first time buyer.

 

[mf1]

Then you sell or gift one half share to here. Its a simple enough calculation. Half the value of house, minus half the outstanding mortgage is what you sell or gift to her and she must agree to take on that half the mortgage. This will mean either (a) your current mortgage provider will have to consent to the sale or gift provided she takes on the burden of half the mortgage or (b) you and she remortgage to clear the old mortgage.

You may also want to factor in your costs in purchasing.

Stamp Duty may be payable - check Revenue website - unless value is less than E127K.
She may have a liability to Gift Tax - again check Revenue.
You will have legal fees in transferring the property into your joint names.

mf

 

[Confusion]

Problem is the Deeds

Stamp Duty wont be an issue
She will be liable for Gift tax ( Current value - mortgage ) = Gift value
Then minus €23,901 allowance from Gift value and *20% and thats what she will pay if on deeds.

Can I suggest putting her on the mortgage only. Then she has the security that you cannot sell without her, she gets what she contributes to mortgage. Then at later date if you get married you can put her on deed without shelling out to revenue, as their are no gift tax between spouses.