stamp duty clawback ftb

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dewdrop

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if a ftb vaacates his house and has rooms let under rent a room scheme does he incur stamp duty clawback by reason on not occuping the house
 
I realise that if you rent your PPR and move then you are liable for SD, but the OP seemed to be asking could he continue with the rent a room scheme while no longer residing in the house.
 
If the OP moves out of the property:

Q. Are they liable for stamp duty?

A. Yes.

Q. Can they continue to benefit from the Rent a Room Scheme

A. No.
 
What happens in the event that you go travelling and are not "resident" anywhere for a year? Can you still avail of rent a room while your away as the dwelling is still your residence?
 
cormacol said:
What happens in the event that you go travelling and are not "resident" anywhere for a year? Can you still avail of rent a room while your away as the dwelling is still your residence?
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Long thread here that deals with the issue-it was also discussed elsewhere on AAM as far as I can recall.
 
Dear Dewdrop
I believe that non-occupancy in itself does not trigger a clawback of the relief. If you are compliant with the Rent a Room rules you may go off and reside with your "sick granny/grandad" to take care of her/him for a while and you will not suffer a clawback - or indeed you may go to Australia for a while too.
Following is a quote from www.revenue.ie:-

"When does a clawback arise?
A clawback arises if rent is obtained from the letting of the house, other than under the rent-a-room scheme. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property."


Also I must congratulate all you conscientous/compliant taxpayers on this site and I do hope some you join the Fianna Fail party......http://www.askaboutmoney.com/showthread.php?t=16080
 
It is a condition of the Rent a Room scheme that you occupy the property. I haven't seen any examples (from Revenue) of incidences when you do not occupy the property but are still deemed to do so, so I would not be so sure that 'non occupancy' doesn't trigger a clawback.
 
noilheart said:
I believe that non-occupancy in itself does not trigger a clawback of the relief. If you are compliant with the Rent a Room rules you may go off and reside with your "sick granny/grandad" to take care of her/him for a while and you will not suffer a clawback - or indeed you may go to Australia for a while too.
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Yes - but when does non-occupancy lead to loss of PPR status?

And is "sick granny/grandad" a euphemism for something (e.g. tax evasion) by any chance?
Also I must congratulate all you conscientous/compliant taxpayers on this site and I do hope some you join the Fianna Fail party......http://www.askaboutmoney.com/showthread.php?t=16080
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:rolleyes:
 
thanks for all the comments. final thought...do solicitors explain the claw back aspect to prospective first time buyers. i would regard myself..retired now...as reasonably informed but i did not fully appreciate this aspect for young people buying. it is rarely mentioned in all the media comment re stamp duty and first time buyers. slan
 
dewdrop said:
thanks for all the comments. final thought...do solicitors explain the claw back aspect to prospective first time buyers.
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I would not have thought so as a matter of course. If the client mentioned that they were planning to rent the property out within 5 years then maybe. I believe that the solicitor should inform the client about the tax issues involved in the specific transaction but it's not their job to act as a general tax advisor. That's my take on it anyway...
 
dewdrop said:
thanks for all the comments. final thought...do solicitors explain the claw back aspect to prospective first time buyers. i would regard myself..retired now...as reasonably informed but i did not fully appreciate this aspect for young people buying. it is rarely mentioned in all the media comment re stamp duty and first time buyers. slan
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How would the solicitor, or indeed the buyer, know what they're going to do in 5 years time?
 
dewdrop said:
it is rarely mentioned in all the media comment re stamp duty and first time buyers.
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Maybe I'm wrong but I'm sure that I've seen it mentioned several times in those newspaper personal finance Q&As for example.
 
It's a fair question-are people made aware of the clawback provisions by their solicitor, but whether it is the solicitor's responsibility or not is another question.
 
CCOVICH said:
It's a fair question-are people made aware of the clawback provisions by their solicitor, but whether it is the solicitor's responsibility or not is another question.
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And by extension the bank should also mention the TRS implications if you change the role of the property from PPR to investment when applying for the TRS?

PRTB registration? Who's responsibility is that to tell them about, the Tenants?

No. If you are entering into a business investment decision it is YOUR resposibility, and solely yours, to ensure your tax affairs are in order. The misconception is that renting out your house isn't a business decision and so can be treated lightly.
 
Howitzer said:
And by extension the bank should also mention the TRS implications if you change the role of the property from PPR to investment when applying for the TRS?

PRTB registration? Who's responsibility is that to tell them about, the Tenants?

No. If you are entering into a business investment decision it is YOUR resposibility, and solely yours, to ensure your tax affairs are in order. The misconception is that renting out your house isn't a business decision and so can be treated lightly.
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Em, did I suggest otherwise? For what it's worth, I agree with you, but I think you may believe I feel people should rely on others for such advice, which is not the case.
 
CCOVICH said:
It's a fair question-are people made aware of the clawback provisions by their solicitor
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Not unless the client explicitly tells the solicitor that they may be renting the property out within 5 years I would not expect so.
but whether it is the solicitor's responsibility or not is another question.
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I certainly don't believe that it is the solicitor's job to act as a general taxation advisor.
 
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