Stamp Duty for Mixed FTB and non FTB

R

RobC

Guest
Hi, myself and my girlfriend are buying a house / apartment over the €317k threshold. I already own a house which I paid Stamp Duty on. Question is, if we are in the lower Stamp Duty bracket, as a FTB she'd be liable for 3% and I'd be liable for 6% as a second time buyer. What % Stamp Duty do we actually pay on new propoerty? Is it between 3 and 6% or would it be the higher rate? Thanks.
 
If all joint purchasers are not FTBs then they are collectively classed as non FTBs. In that case the higher stamp duty rate would apply. Are you buying this as owner occupiers? If you yourself are buying your share as an investment then there may be other tax implications. If you are planning to rent out your former PPR within five years of purchase then you may be liable for an additional stamp duty clawback if what you paid is less than what an investor would have paid.
 
Thanks. If we get a joint mortgage but put the property in her name, will this enable us to get the lower rate? Are solicitors open to this? I have my other property rented and have already dealt with the Stamp Duty clawback. We intend to live in the new property and leave my other property rented.
Secondly, If the property we were buying is purchased from a family member, is there something about only paying half the stamp duty when transferring deeds between close relatives?
 
RobC said:
Thanks. If we get a joint mortgage but put the property in her name, will this enable us to get the lower rate?
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There are many existing threads dealing with this that would be worth checking. This strategy leaves the "passive" partner (i.e. you) open to risk.
Secondly, If the property we were buying is purchased from a family member, is there something about only paying half the stamp duty when transferring deeds between close relatives?
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Yes - consanguinity relief means that such transactions are subject to SD at half the normal rate. But whose is the seller related to - you or your partner?
 
The property we may be buying is currently owned by my sister. So this means that although we'd be liable on a normal property for 6% stamp duty, we may only have to pay 3% due to the consanguinity relief? Are there any restrictions on this?
I will check the other threads regarding only putting one name on the property.
Thanks again.
 
RobC said:
The property we may be buying is currently owned by my sister. So this means that although we'd be liable on a normal property for 6% stamp duty, we may only have to pay 3% due to the consanguinity relief?
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If you were the sole buyer then you would qualify for the relief. If you are buying jointly then I'm not sure how it works for you and your partner - e.g. do you pay half the normal rate on your half and your partner pays the full non FTB rate on her's?
 
Who would be the best person to tell us this? So even though she is a FTB (3%), because she's buying with me she would have to pay 6% even if i were to get the relief from buying it from my sister so I may end up paying 3% and she'd pay 6%.
 
I don't know the answer. If nobody else here can answer that question then your solicitor should be able to clarify. Otherwise ask a tax expert or accountant. You could try Revenue but you can't be guaranteed accurate information in my experience from them.
 
Consanguinity relief will only apply where the parties to the transaction are related. Otherwise higher rate applies even if one is a ftb and one is related.

This is the Revenue Cert:
IT IS HEREBY FURTHER CERTIFIED by the party becoming entitled to the entire beneficial interest in the property that the person becoming entitled to the entire beneficial interest in the property is related to the person immediately heretofore entitled to the entire beneficial interest in the property as brother.


Subject to correction but my view is that the higher rate will apply. Unless take the route of one on Deeds but two on mortgages - I don't like this. But there are lots of views on it on other threads.

mf
 
Not a solution as such but I understand if you were a married couple then you could take advantage of the consanguinity relief. I base this on the experience of two different parties I know who availed of this relief.
 
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