Stamp duty clawback on PPR rented in 1st 5 years

M

mo3art

Registered User
Messages
721
Thanks for the help on the last property investment thread lads & lassies.

I have another question, I've been trawling the Revenue website the past few days and just can't get a straight answer about stamp duty on new builds.

Background is that we bought a new build with a floor area exemption cert as FTB for our PPR two years ago. We plan on letting it out, but can't figure out whether we will have to pay (a) clawback of 4% (stamp duty for investors at the time), or (b) clawback of 4 5 of 1/4 of value of property at time of purchase (ok well 1%).

Is this making sense? Can anyone help me out on this one - which applies? The 1/4 stamp duty or the other?

Thanks a million in advance
(the revenue website alludes to both so that's why I'm so confused - I did try to get independent advice but no one can give me a straight answer.)
 
The stamp duty clawback is an all or nothing thing and if you are liable for it the you are liable for it in full (i.e. the full amount of stamp duty that an investor would have paid on the property) and it is not calculated on a pro rata basis. I don't understand your calculations above but they are irrelevant anyay. If you buy a property as an owner occupied PPR and then rent it out within five years of purchase (other than under the owner occupier rent a room scheme) then you are subject to a clawback of stamp duty to the tune that an investor would have paid on the same purchase at the same time.
 
Thanks Clubman but I am aware that the clawback is an all or nothing situation. What I'm confused about is what rate I will have to pay as we bought a brand new house with a floor exemption certificate.
The Revenue commissioners allude to both variations on their literature - 1/4 value of the house is liable for stamp duty for investors & standard 4% on the purchase price - hence the post. I'm confused which I will have to pay. I'm definitely not trying to evade the tax anyway ;)
If anybody knows the answer please let me know?
 
You must log in or register to reply here.
Back
Top