Stamp Duty Clawback - When to pay?

L

Lyndan

Registered User
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250
Hey All,

We are moving to Singapore next month and we are going to rent out our apartment, we have to pay back €19,200 in stamp claw back and the website says we have to pay it on the first day we recieve rent. We dont have the money to pay right now and I was wondering if anyone has any experience of paying this clawback and if the revenue would allow us come to some sort of an arrangement with them?

Cheers
 
The rules seem pretty clear to me - payable at the time mentioned. You should probably get independent, professional tax advice especially if you are not going to meet the requisite deadline.
 
19k is a lorra dosh..how long will you be away? Calculate the shortfall between rental income and mortgage payments per month and multiple by the num of months you'll be away. It may make more sense to leave it idle or even sell it.
 
Yes the rules are clear but Im wondering if anyone has experience of them giving them some grace period...
 
19k is a lorra dosh..how long will you be away? Calculate the shortfall between rental income and mortgage payments per month and multiple by the num of months you'll be away. It may make more sense to leave it idle or even sell it.
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Did you read this? Have you done this? It's unlikely that it would make sense to let this apartment, if you insist on holding onto it, perhaps leaving it idle would make most sense - when will the 5 yrs be up?
 
I did read it!

We are going to be away for 2 years. Our rental income will be €33,600 over the 2 years. I figure once the apartment increases in value by at least €20k we havent lost and we have had 2 years paid off our mortgage by renters!

5 years isnt up until 2010!
 
Lyndan said:
Yes the rules are clear but Im wondering if anyone has experience of them giving them some grace period...
Click to expand...

I think the only way to clear this up is to give the Revenue a call. They are quite helpful in my experience.
 
There will also be CGT implications here - the apartment will no longer qualify as your PPR, it's also likely that most of the gain has already happened, but you will still have to pay CGT on that, even though the property was your ppr, for example:
You own the house for 5 years, bought for 420K, sold for 550K in 2010 - total gain 130K, or 26K p.a. - relief for the 3 years you lived there = 78K taxfree and the remaining 50K taxed at 20% - 10K CGT. There may be some exemption there for living abroad, but not sure if it applies when the property is rented. There may also be some tax liability on the rental income that should be considered.
 


The apt going up by 20k (If it goes up at all) is irrelevant to your decision as this will happen whether you rent it out or leave it idle. You also have to factor other costs when you rent out such as insurance and re-furb if your tenants wreck the place. Also, the hassle of renting - who will get your tenants for you if your first ones leave....if the management co doesn't do their job the apt could be idle anyway and you'd still have the full whack to repay.....

I can see where you're coming from and you'd hate to be in Singapore and paying a mortgage on a rentable apt.
 
In addition your tenants are obliged to deduct tax at 20% and remit to revenue unless you appoint someone an agent in the state to do this for you. You also have to make a return to revenue each year and pay tax on any profit

See [broken link removed] for rental returns in general and "What if Rents are payable to a non-resident landlord? and How are non-resident landlords taxed?" in particular
 
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