Stamp Duty Claw Back

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ANDYCOLE9

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Hi. As a first time buyer i paid no stamp duty. I now want to go away travelling and therefore will rent my apartment out. Since i am renting within 5 years of purchase i am liable for Stamp claw back. I have two questions: Is there a way of avoiding paying this? and....is it legal to have a clause in the lease stating that no rent relief is available? Thanks for your help
 
Hi. As a first time buyer i paid no stamp duty. I now want to go away travelling and therefore will rent my apartment out. Since i am renting within 5 years of purchase i am liable for Stamp claw back. I have two questions: Is there a way of avoiding paying this?
Probably not. There are circumstances in which you can retain your PPR status while abroad but as far as I know (get independent professional advice of you want to know for sure!) it would involve some or all of (a) not collecting rental income (other than rent a room income maybe) (b) somebody (most likely a family member) living there on your behalf and (c) going abroad due to secondment in work as opposed to voluntarily for holidays.
is it legal to have a clause in the lease stating that no rent relief is available?
I doubt it and it has no relevant to any SD liability that may arise in any case.

You should get independent profesisonal advice to be sure that you are aware of your liabilities.
 
cheers club man. i am actually going away to work and at the end of my stint working abroad (cayman islands), i then plan on doing a bit of travelling. With this in mind, would it have a bearing on the issue of claw back, in your opinion?
 
cheers club man. i am actually going away to work and at the end of my stint working abroad (cayman islands), i then plan on doing a bit of travelling. With this in mind, would it have a bearing on the issue of claw back, in your opinion?
You would really need to get professional advice to see if you could retain your PPR status while abroad. However renting the property out especially if you collect more than €7,620 p.a. in rental income (the owner occupier rent a room limit) and maybe even regardless of this, will most likely make this a moot point. More likely that not you will be liable for the SD clawback, rental income tax and possibly CGT on some portion of any resale gain by renting the property out while abroad.
 
You would really need to get professional advice to see if you could retain your PPR status while abroad.
Definitely not if you're renting it out - a couple of years ago, friends of mine were in a similar position: Mr. A was seconded abroad, and in order to avoid incurring a stamp duty liability, Mrs. A maintained residence in their family home for an additional two or three months (to bring them up to the five years) before joining him. That allowed them to avail of the rent-a-room scheme for the period while Mrs. A was still resident - and note, she really did live there in the period - and then to arrange a tenancy which took effect within a couple of days after the five years terminated.

All in all, doing things that way saved them well over €10,000, and as the secondment wasn't far they did get to see each other on occasional weekend trips. Not practical for everyone obviously, but perhaps a solution for some people if there's only a short time left to the five year deadline.
 
When does the 5 years for Stamp Duty start? I've done some searches but am none the wiser
 
From when you take legal beneficial ownership of the property (i.e. close a property purchase and get the keys) as far as I know.
 
snag for me is i am only 11 mths in to my apartment so i will either have to have some trustworthy tenants or else just bite the bullet and pay up the Eur9,280 :(
 
How would having "trustworthy" tenants alter your SD liabilities!? :confused:

See if they're trustworthy then Revenue will surely just give him the oul nod and a wink whilst those darn untrustworthy ones, probably Johnny Foreigner, will lead him down the path to rack and ruin.
 
Unfortuantely that's what I was assuming alright.

Thread closed as from the original poster's first post to the last one it all seems to be aimed at gathering info on how to evade tax and other responsibilities.
 
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