Stamp Duty Issue

T

taipan

Registered User
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Hi All, First time posting on the site, so apologies for the lenght and complexity of the mail.

  • My partner bought house with previous partner who were both (FTB's). He then got divorced and purchased a PPR on his own for £110k in 2001 (under 125sq m) He did not pay stamp duty.
  • After 1 year he moved back to his parents and rented property out.
  • We got together and purchased home which is now our PPR (I was a FTB) We did not pay stamp duty. Our solicitor advised we didn't need to after hearing the facts. His initial property is still renting.
I have registered the property with the PRTB and am looking to pay tax owed to revenue. I am worried about a potential stamp duty clawback on one or both properties....

Can anyone please help and advise where we stand?

Many Thanks.....
 
OK - you need to be a bit clearer. Stamp duty will arise on a second hand property where the purchaser is not a first time buyer. Stamp duty may also arise on a new property if the property is over 125sq m and the purchasers are not owner occupiers. Stamp duty does not arise on a new property under 125 sq m if the purchasers are ftbs or owner occupiers.

Deal with partner first:
1. First house - ftb.
2. 2nd house - he may have been deemed to be a ftb but this depends on the terms of his divorce. Or it was a new house and he was an owner occupier.

However, the whole point about ftb relief is that it is to give ftb's a leg up - it is not to be used by investors and there may well be a clawback due if the house, as you say, was rented out.

Your house
New ? or second hand? This makes a difference. Your o.h. is most definitely not now a ftb but he could be an owner occupier. If this house was second hand and you are both on the title, then stamp duty was payable. And interest is running. If the house was new and under 125 sq m , then no stamp duty was payable.

I'm intrigued - given the number of properties your o.h. has bought ( he is on his third now) - that there should be any difficulties in working out whether stamp duty was payable.

mf
 
Thanks for the reply MF...

Just to clarify...
My partner bought the first house which was new and under 125 sq m with the intention of staying but work committments forced a move back to Dublin. He returned and then proceeded to rent that property out.

The house that we bought together several years later was also new and is over 125 sq m. He may be classed as an owner occupier and not an (FTB). We are still living in this house and his initial house continues to rent.

Many thanks for any help or comments oor potential stamp duty liability.....
 
Sounds as if there is a stamp duty clawback on the 2nd property your oh bought and he needs to get that sorted.

It sounds as if the house you live in, even though over 125 sq m is exempt - stamp duty is calculated on an over 125 sq m property for o/occupiers on the basis of the site fine or 25% of the combined total of site fine plus building costs ex vat - which ever is the greater. If in doubt, talk to the solicitor again.

mf
 
Hi MF ,
I bought a house in Limerick a few years ago . The deeds were handed over in January 2007 .
I purchased as an owner occupier .
I'm eager now to rent out this property from July 1 2009 but I'm worried that I may be liable for a stamp duty payment .
I'd greatly appreciate your expertise .
 
Paddy H, you might want to familiarise yourself with the posting guidelines and edit your post -
 
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