Stamp Duty and Relatives

A

apd

Registered User
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Hi,

Are there any stamp duty liabilities in a case where relative A (be that brother, sister, mother or father) buys an interest in a property owned by relative B.

Thanks
 
Need more details but in general yes but (a) obviously only the partial share value is assessable and (b) consanguinity relief means that in the cases outlined above SD at half the normal rate will apply.
 
Are there any stamp duty liabilities ........?

Yes.

There is however a relief - consanguinity - if the vendor / purchaser are related then if stamp duty applies, it applies at what is called "half the ad valorem rate" i.e. half the normal rate. To avail of the relief the Deed must have a clause claiming, the Deed must be adjudicated by Revenue and a valuation ( full market value) furnished to them. If the sale is at an undervalue then CAT (gift tax) may be payable. CGT may also be an issue if the property is not a PPR.

mf
 
thanks for the response.

So a practical example would be where a son/daughter purchases a 50% interest in a parents house.

if the house cost 400,000, stamp duty at the normal rate would be 6%.
However because the transaction is only for 200,000, the applicable rate is 6% x 200000 rather than 6% x 400000.

Then the consanguinity relief kicks in so the calculation becomes half of that rate i.e.

3% of 200000

Is that correct?

Many Thanks
 
Seems correct to me.

Just in case it's relevant ... SD will be assessed on the fair market value of the property so any discounted price will be irrelevant for SD purposes and could give rise to other tax implications.
 
My daughter is going to sell her house, at €310,000. I am considering buying it. How much "Stamp Duty" do I pay??
BobMax
 
I am assuming that €310K is the fair market value of the property and that the property is not more than 125sqm in area. Also assuming that you are not a first time buyer (in which case you would pay 0% since the peoperty is under the FTB second hand house SD exemption threshold of €317,500) so you would pay half of the normal 5% for the non FTB buyer of a second hand house in the €254,001-€317,500 SD bracket - i.e. 2.5% of €310K = €7,750.
 
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