stamp duty clawback

G

Garmon

Guest
Hello,

I was wondering if anybody could help me.

my query is with regard to stamp duty clawback. I bought a 2 bed apt in september 1998. The price was 109,950 incl VAT or €140,000 incl VAT. VAT is at 12.5% or 17500.

taking away the vat from €140000 leaves €122500 which is below the stamp duty threshold of €127000, that is investors are not liable for stamp duty on prices below that amount. This is the law from 2001 onwards I think

I lived in the house until may 2003 4 years and 8 months. I rented it out then unaware of the stamp duty issue.

my question is : Am I liable to stamp duty clawback? does the law apply from 2001 onwards or from the year I bought the apt in 1998? - I am unsure what the stamp duty law was back in 1998.
 
Garmon said:
my question is : Am I liable to stamp duty clawback?
Click to expand...
Yes - but if the ex VAT cost of the house was below the 1998 investor threshold for SD then you have no liability. You need to ascertain what SD rates and exemptions applied in 1998. Ask Revenue and/or get professional advice.
 
I have checked and it appears to be 4%. which means I have to pay €3660 (4% of €122,000) Is it true I can offset all of this against capital gain tax to be paid on the property when I sell it?
 
Is 4% the rate that applied in this situation in 1998? You can offset SD as an allowable cost against CGT as far as I know. But check this out for sure and get professional advice with your CGT return if necessary.
 
Main Rates of Stamp Duty Conveyance or transfer of property other than stocks or marketable securities.
(Conveyance /Transfer/Assignment by sale or gift)
[broken link removed]
For instruments executed on or after 2 December 2004 and before 31 March 2007:

Aggregate Consideration First Time Buyer Full Rate Up to €127,000 Exempt Exempt €127,000 - 190,500 Exempt 3% €190,501 - 254,000 Exempt 4% €254,001 - 317,500 Exempt 5% €317,501 - 381,000 3% 6% €381,001 - 635,000 6% 7.5% Over €635,000 9% 9% CHANGEOVER TO EURO 01 JANUARY 2002

Residential Property only
Aggregate Consideration First Time Buyer Full Rate Up to €127,000 Exempt Exempt €127,000 - 190,500 Exempt 3% €190,501 - 254,000 3% 4% €254,001 - 317,500 3.75% 5% €317,501 - 381,000 4.5% 6% €381,001 - 635,000 7.5% 7.5% Over €635,000 9% 9%
non- Residential Property Only
Aggregate Consideration Rate of Duty Up to €6,350 Exempt €6,351 - 12,700 1% €12,701 - 19,050 2% €19,051 - 31,750 3% €31,751 - 63,500 4% €63,501 - 76,200 5% Over €76,200 6%
6 December 2001

Residential Property Only
Aggregate Consideration First Time Buyer Full Rate Up to £100,000 Exempt Exempt £100,001 - 150,000 Exempt 3% £150,001 - 200,000 3% 4% £200,001 - 250,000 3.75% 5% £250,001 - 300,000 4.5% 6% £300,001 - 500,000 7.5% 7.5% Over £500,000 9% 9% 27 January 2001

Residential Property Only
First Time Buyer Owner/Occupier Investor(New) Investor(2nd) Up to £100,000 Nil Nil 3% 9% £100,001-150,000 Nil 3% 3% 9% £150,001-200,000 3% 4% 4% 9% £200,001-250,000 3.75% 5% 5% 9% £250,001-300,000 4.5% 6% 6% 9% £300,001-500,000 7.5% 7.5% 7.5% 9% Over £500,000 9% 9% 9% 9% [broken link removed][broken link removed]
15 June 2000

Residential Property Only
First Time Buyer Owner Occupier Investor Up to £100,000 Nil Nil 9% £100,001-150,000 Nil 3% 9% £150,001-200,000 3% 4% 9% £200,001-250,000 3.75% 5% 9% £250,001-300,000 4.5% 6% 9% £300,001-500,000 7.5% 7.5% 9% Over £500,000 9% 9% 9% 23 April 1998

Residential Property Only
Up to £60,000 Nil £60,001 - 100,000 3% £100,001- 170,000 4% £170,001- 250,000 5% £250,001- 500,000 7% Over £500,000 9% 23 January 1997

Up to £5,000 Nil


Transition period: Contract dated prior to 23.01.1997 subsequent deed dated on or before 30.04.1997 £5,001-10,000 £1.00 per £100 or part thereof £10,001- 15,000 £2.00 per £100 or part thereof £15,001- 25,000 £3.00 per £100 or part thereof £25,001- 50,000 £4.00 per £100 or part thereof £50,001- 60,000 £5.00 per £100 or part thereof Over £60,000 £6.00 per £100 or part thereof Residential Property Only £150,001 - 160,000 £7 per £100 or part thereof £160,001 - 170,000 £8 per £100 or part thereof Over £170,000 £9 per £100 or part thereof
Above are the rates. I know this is neither here nor there but it seems I would have been better buying in 2001 when I would have been exempt.
I owe €4880 not the figure I quoted before.

This is the only property I have - currently renitng myself and I would advise anyone before renting to get advice. I would have finished my 4 months if I had known about the 5 year rule and not be in this situation now.

I have checked with cgt and it seems to be that stamp duty is allowable as a quote

" Cost of Acquisition •Incidental costs of acquisition such as legal fees and stamp duty are allowable as part of the cost"



thanks for advice and help
 
You should double check that 4% is the correct rate in this case. I would not necessarily trust the documentation on websites.
 
You must log in or register to reply here.
Back
Top