Stamp Duty for a couple with only one being a first time buyer

R

Ruskey

Guest
Hello,
I have been looking around this forum for answers on my stamp duty problem but I can't find one that is the same (Sorry if there already is one and I missed it)

My girlfriend bought a new house by herself around seven years ago and it is the current house we are living in.

We are thinking of buying a second hand house now for somewhere in the region of €260K to €270K. She would like to keep the original house and rent it out.

Seeing as I have never bought a house before, if the house is in my name and I am the primary name on the new mortgage do we have to pay stamp duty?

Do our circumstances change a lot if we get married?

I would be very gratefull for any help.
 
As far as I'm aware you would not be liable for stamp duty. You are a first time buyer, your name on deeds, primary name on mortgage and the price you want to pay is well below the threshold. Circumstance change for the better if you marry. There is no tax liability on property transfers between spouses.
 
both purchasers have to be first-time buyers to qualify for stamp duty relief. unless she is willing to have her name omitted from all documentation and you are able to get a sufficient mortgage without her, you will have to pay stamp duty.
 
Thanks for your help folks. That's cleared it up for me.
 
Just to emphasise for anyone else reading this thread...if your girlfriend was a FTB and decided to rent the property before she owned it for 5 years, there would be a stamp duty clawback. As she's owned it for 7 there is no liability.
 
liteweight said:
There is no tax liability on property transfers between spouses.
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Just to clarify here - although maybe Vanilla will confirm it - you need to wait 3yrs after you get married before you can add your wife to the title without incurring tax liabilities.
 
BigM said:
Just to clarify here - although maybe Vanilla will confirm it - you need to wait 3yrs after you get married before you can add your wife to the title without incurring tax liabilities.
Click to expand...

Good to know if correct. Especially in Ruskey's case.
 
liteweight said:
Good to know if correct. Especially in Ruskey's case.
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The 3yr waiting period is w.r.t. CGT/CAT, not SD (can't find a relevant link on revenue.ie though)

So for your 3rd Anniversary, you can give your wife half a house!!
 
liteweight said:
So if he signs half over before the three years are up, she'd have a CGT liability?
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Technically she'd have a CAT liability - the same as if he signed over half the house to you or I, we would be taxed on the 'gift'.
He wouldn't have a CGT liability since it's his PPR.

I've searched high and low on the Revenue site but cannot find where this 3yr period is stated - I was told about it by my solicitor a few weeks ago.
 
you need to wait 3yrs after you get married before you can add your wife to the title without incurring tax liabilities.
Click to expand...

I've never heard this before - in any event once you marry the property you live in becomes the Family Home with in the meaning of that legislation - both partners have an equal share in the property regardless of the title.
 
Is there a confusion here about a gift of property from a parent to an offspring? Which if made to the offspring and the offsprings spouse/partner ( or transferred from offsping to offsrping adn spouse) would mean the possibility that CAT might become due on the share taken by the offsprings spouse PLUS any stamp duty payable would not get the Consanguinity relief?

That does not arise in this case I understand.

And Kildrought:

"in any event once you marry the property you live in becomes the Family Home with in the meaning of that legislation - both partners have an equal share in the property regardless of the title."

Not true. This would be very unfair in the break up of a short marriage where the Family Home was owned by one only. The assets available to both would be taken into account by a Court in divvying up the pot but not on a 50:50 basis on the Family Home as you sugggest.

mf
 
whats the situation Wife owns house bought in 2005 ..... we married in july 2006 she moved into my house ... thinking of selling hers ..... what is the time period whereby she can avoid CGT

thanks
 
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