Stamp duty for first time buyer, buying with someone else

Brendan Burgess

Founder
Messages
37,953
An interesting Question and Answer in today's Sunday Business Post by Ann Williams, Director of Private Client Services with KPMG.

To obtain the stamp duty exemption( for new houses), the purchaser has to certify that the property wil be the only or principal private residence of ...one of the purchasers or of another person "in right of the purchaser".

This means that where the purchaser authorises a person to occupy the property as his/her only or principal residence, the purchaser pays no stamp duty.

For example, the parents can purchase a new apartment for their child to occupy rent-free as their principal residence and pay no stamp duty on the purchase.
The stamp duty exemption is withdrawn if the occupier ceases to occupy the property as their principal residence within 5 years.

I don't know if the "rent-free" is a requirement.

Brendan
 

ClubMan

Frequent Poster
Messages
43,866
Re: Stamp duty for first time buyer, buying with someone els

I don't know if the "rent-free" is a requirement.

Surely it has to be as otherwise the property is a rental/investment property and the usual rules as far as a tax (including SD) goes? For what it's worth this PDF Revenue booklet mentions the "in the right of the purchaser" condition.
 

Brendan Burgess

Founder
Messages
37,953
Re: Stamp duty for first time buyer, buying with someone els

From the above booklet:

Who is an Owner Occupier ?
An Owner Occupier is a person who purchases a new house/apartment which is to be occupied by
the purchaser, or a person on his behalf, as his only or principal place of residence and no rent,
other than rent under the rent-a-room scheme, is derived from the property for a period of five
years from the date of the purchase.
 
Top