Stamp Duty query

L

lucyd

Guest
Hi, can someone please explain in plain English the following from the Revenue Commissioners website;
"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 th total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback."

My understanding had been (until looking at the Revenue's website) that new houses were exempt from stamp duty if bought by an owner/occupier. Is this not correct? i.e. if the square footage is 2,100 sq ft, am I liable for stamp duty and if so how much?

Also; if I buy a 'new build' from a builder on say 1/2 acre, am I liable for stamp duty on the site? And if liable for stamp duty on the site am I liable for stamp duty on the house too if it's 2000 sq ft.

I'm trying to work out the costs of 1) buying a site and building on it and 2) buying a 'new build' from a builder and 3) buying a second hand property.

Sorry, if I am asking the obvious! Clarification would be appreciated.
 
lucyd said:
Hi, can someone please explain in plain English the following from the Revenue Commissioners website;
"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 th total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback."

My understanding had been (until looking at the Revenue's website) that new houses were exempt from stamp duty if bought by an owner/occupier. Is this not correct? i.e. if the square footage is 2,100 sq ft, am I liable for stamp duty and if so how much?
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Only new homes under 125sqm are automatically exempt from SD for owner occupiers (FTB or not). Over 125sqm and the chargeable consideration (i.e. the amount on which SD is determined) is as explained above (site value or 1/4 total value both ex VAT - usually it'll be the latter). If the chargeable consideration is less than €127,000 (non FTB) or €317,500 (FTB) then no SD is payable. Assuming that the site value is less than 1/4 of the property price then this effectively means that new properties over 125sqm but under €127,000 x 4 = €508,000 (non FTB) or €317,500 x 4 = €1,270,000 (FTB) are exempt from SD. (I think!)
 
I have a similar query. Despite the reams of stuff on AAM and Revenue.ie, I'm obviously too stupid to understand the calculations. We are buying a new house that exceeds the 125 sqm threshold. The higher relevant amount is 200k for the site. What I cannot understand is whether this 200k is subject to stamp duty at 9% (full purchase price is 720k) or a lower amount (4%/6%). My solicitor has calculated and invoiced for 18k, but earlier said it would be about 5k. I have no major gripe with the solicitor as mistakes happen but I want to be sure it's the right amount this time as another solicitor and bank had also worked it out at the lower amount before we decided to buy.
 
Boberto:

If you are an investor, the rate would be 9%. Otherwise it should be 4% (if you're not a FTB).
 
Thanks deadlyduck. My solicitor disagrees and insists the amount due is 18k (200k x 9%) rather than 8k (200k x 4%) which I think seems more believeable - of course I would say that I suppose, meaning an extra 10k in my pocket. I tried ringing the Revenue to get the official word, but unfortunately I'm not allowed to tie up the phone for 4 hours on hold. A worked example on their website would be useful.
 
As stated by deadlyduck, the rate depends on your status, as stated by Revenue:

The amount of stamp duty payable depends on:

i) The price paid (or the market value where the price paid is less than market value) for the property


ii) Whether the property is new or second-hand and


iii) Whether you are a first time buyer, owner-occupier or investor
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once you know how the infamous "Aggregate Consideration" is arrived at, and you do, then the only other matter is are you an investor or not.

as stated by Revenue again:

Investors

New houses or apartments (whether under or over a floor area of 125 sq. m) which are purchased by investors are charged to duty on the entire price paid (exclusive of VAT) for the house or apartment.
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.

So your solicitor could either be right or wrong, depending on your status, which we don't know.

[broken link removed]
 
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