Just shows that anybody getting into a business (in this case rental property management) that they know little or nothing about should really seek independent, professional advice about the tax and other issues involved.I thought I was doing everything by the book. I didn't know anything about Stamp Duty Clawback. If I had known about it I would have paid it on time. Now it appears my ignorance is going to cost me a lot in penalties.
There do seem to be a lot of similar posts to this, I wonder if Revenue may be open to an amnesty of some description in the foreseeable future?
Why? The actual rules (as opposed to perception) seem clear to me-and I would like to know how anybdoy can reasonably claim otherwise?
Ignorance of the rules is no defence.
I am an owner occupier of a 2-bed apartment that I would like to rent out so I can go abroad to the states for a year or two, but I have only owned the property from new for 3 years. So I would be liable for SD clawback, I assume. The apartment would fetch about E1,300 per month if let out. What if I was to Rent the master bedroom under the rent a room scheme for about E800 and leave some belongings in the single bedroom(This would pay most my mortgage). I know this means the tenant(s) would lose their rights, but they would have a cheap one-bed apartment and we could make a verbal agreement that I would be away most of the year (wink-wink: all of it). Everbody wins? Would I get away with it though? It sounds like it is legal anyhow.
Yes - can't see how there can be any doubt at this stage!So I would be liable for SD clawback, I assume.
You can only avail of the rent a room scheme if you are an owner occupier. If you move abroad for a few years then it is unlikely that you could retain your owner occupier status.What if I was to Rent the master bedroom under the rent a room scheme for about E800 and leave some belongings in the single bedroom(This would pay most my mortgage).
Not if it involves illegal tax evasion. The state and other compliant taxpayers lose out and hopefully the evader does too eventually when they are caught. Please don't ask for advice on evading tax or engaging in illegal activities on AAM.we could make a verbal agreement that I would be away most of the year (wink-wink: all of it). Everbody wins?
The system just seems unfair, if I go abroad I will have to rent in the US. Renting out my place could leave me with a SD bill of about E25,000. Or I dont rent and I lose out on 15,600 potential rent in one year (plus I pay my mortgage) or I have to sell up and off the property ladder. All I want to do is live abroad for a year and now I can't because all of these options leave me skint. Guess I just need more money.
So why these comments then?Thanks for the advice. I am only looking for a way to legally avoid paying stamp duty clawback.
we could make a verbal agreement that I would be away most of the year (wink-wink: all of it). Everbody wins? Would I get away with it though?
After most likely pocketing a tax free capital gain. Hardly penal.The system just seems unfair, if I go abroad I will have to rent in the US. Renting out my place could leave me with a SD bill of about E25,000. Or I dont rent and I lose out on 15,600 potential rent in one year (plus I pay my mortgage) or I have to sell up and off the property ladder.
So why these comments then?
After most likely pocketing a tax free capital gain. Hardly penal.
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