Stamp Duty Owner Occupier Floor Area > 125 sq m

T

thejuggler

Registered User
Messages
133
I have a query about stamp duty. I am considering selling my current house (Current value circa 400k) Mortgage outstanding is 147k

I am looking at purchasing a new build house for 500k which i assumed would be stamp duty exempt as I would be an owner occupier. However the auctioneer says that the floor area is 144 SQ.M. and that I would therefore be subject to some stamp duty but he did not say how much.

Can anyone fill me in on how to calculate the stamp duty that would be due on this property? I thought new houses were stamp duty exempt for owner occupiers?
 
and [broken link removed] outline the calculations involved. Your solicitor should also be able to advise.
If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.
Click to expand...
 
The following may help..

Extract from

Stamp duty on new houses and apartments

If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.

(Edited : CROSSED WITH CLUBMAN POST)
 
Does this answer it
From revenue website [broken link removed]

Over Floor Area of 125 sq. m



New houses or apartments which are purchased by an owner occupier (including a first time buyer) where the total floor area exceeds 125 square metres are charged with duty, at the appropriate residential property rate as per the table above, on the site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback.The size of the floor area must be certified by a qualified architect, engineer or surveyor
Click to expand...

​
Post crossed with Clubman & bacchus
 
What happens if an extension is added to the dwellling - to take it past the 125m2 mark. Will clawback kick in??
 
I very much doubt it but if in doubt get independent, professional tax advice. Of course such an extension would mean that any future resale of the property might be liable for SD payable by the buyer according to the rules outlined above.
 
ok, now maybe i am being thick but according to any documentation i have seen on new houses and stamp duty payable even as 2nd time buyer of one (A new housethat is), the site or 25% of the total prices has to be in excess of €127,000 before stamp duty is payable. Ok in dublin, i suppose its feasible that a site cost might exceed €127000, even in an estate, but if it doesn't, even at €500k for the total build cost, 25% of that is still below, just, the threshold for stamp duty. So in the OP's case, you'd need to ascertain the site price to make sure you are exempt.

As for serotoninsid's remark, cant see how there will be a stamp duty issue for building an extension, as is SD not asertained by the market price at time of purchase, rather than value of the house thereafter? Is that not similiar to buying a new build, putting in a kitchen (german all singing all dancing type) and then SD being chargable on house cost plus cost of kitchen??? as such dont think that would be an issue. As clubman points out, SD will apply to any subsequent buyers at the normal rates, based on market price and whether purchasser is first time or owner occupier or invester and square meterage wont come into it as it will no longer be classed as a new build!!

This makes sense to me but maybe i have just lost the plot!!!
 
just one question my girlfriend bought a house and shes a first time buyer the thing is most of the houses are 3 bedroomed semi detached but she got the option to have the attic converted which she done

The price of the house was €190000 and after the attic been converted as far as i know the house is sized at 133 sq metres does this make her liable to stamp duty.

Her solicitor has said nothing about this to her and she doesnt even know about it myself in fact if i hadn't seen this post i probably wouldnt be writing this right now.

She is also owner occupier so if anyone has any info it would be well appreciated
 
i think the posts already above, plus the links posted cover the answer to that one!
 
As she is a first time buyer and assuming the house is over 125 sq meters she only has to pay stamp duty if the value of the proprety is over 317K
 
Thanks to all for the info. I spoke to the auctioneer again and he said stamp duty would be in the region of 11k. However if I am interested in buying the property I will consult my solicitor to do the calculation.
 
This topic has been discussed many times before, here, and here and indeed here.

The basics of it are that on houses over 125 sq meteres you need to work out the chargeable consideration which is usually 25% of the cost of the house minus VAT @ 13.5% - then it is this chargeable consideration that any stamp is calculated on. So if your chargeable consideration is less than 127,000 euro then you pay no stamp duty, even though the house is over 125 sq m.

Thejuggler - I think the estate agent is incorrect and I think that you should pay no stamp duty - you say the house is 500k so the chargeable consideration is 500,000 - 65000 (VAT @ 13.5%) * 25% = 108750 (chargeable consideration) - this is less than 127,000 so no stamp duty is payable.

NB - I would NOT rely on either your solicitor or an estate agent (based on previous past experience) to give you the correct answer - you need to work it out and confirm it for yourself!
 
Hmm interesting and it would be a good saving if it turns out that way.

It seems that the house price in the next release (this is a housing estate) will be gone up to 530k
so doing the math the chargeable consideration is
530,000- 71550 (VAT @ 13.5%) * 25%
= 114612.50 which is below the 127k exemption limit.

The only sticking point would be if the site is valued at more than this as it is the higher value that is used.
 
How do you obtain a figure for the site valuation in a situation such as this? From the developer? From one or more auctioneers? Somebody else?
 
Hope this is not being seen as fussy

The actual figures are 530,000 / 1.135 = 466,960 * 25% = 116,740
(466,960 being the pre tax price) The result is less than 127K anyway

Just for future reference for those relying on the calc.
 
The only sticking point would be if the site is valued at more than this as it is the higher value that is used.
Click to expand...

Unless you're buying a house in Sth County Dublin (and at that price you are not!) it is highly unlikely that the site for a new build 1550 sq ft house that is only costing 530k is valued at more than 116,000.

As for where do you get the site cost ? - I believe it is the cost to the developer to buy it that is used ie how much the devloper paid divided by the proportionate amount for each particular plot. I think that most of the time the 25% rule is used unless specifically challenged.

BTW in addition to not relying on Solicitors or Estate Agents to calculate SD correctly neither would I rely on the Revenue Stamping Office to calculate it correctly either !! - make sure you calculate yourself and can back up your figures (I unfortunately speak from experience)
 
we are in the same dilemma with a new house on mkt for 275k, we are not first time buyers but will be owner occupiers but the auctioneer says that the builder doesn't calculate the stamp duty in the way that you all have been mentioning (chargeable consideration) - he wants us to pay the rate of 5% ?
we have looked on the daft website, sherry fitzgerald website & the revenue website and have got 3 different explanations of how to calculate the sd - where to from here ? how can we be sure what amount sd is due if any ????
 
brighteyes said:
we are in the same dilemma with a new house on mkt for 275k, we are not first time buyers but will be owner occupiers but the auctioneer says that the builder doesn't calculate the stamp duty in the way that you all have been mentioning (chargeable consideration) - he wants us to pay the rate of 5% ?
we have looked on the daft website, sherry fitzgerald website & the revenue website and have got 3 different explanations of how to calculate the sd - where to from here ? how can we be sure what amount sd is due if any ????
Click to expand...

This thread relates to a new build property, never been lived in before, not buying a "2nd hand" property as in your case! so 5% is the correct rate for the purchase price you mention!
 
apologies for my confusion - it is a new build , never lived in.
 
You must log in or register to reply here.
Back
Top