Stamp duty - Second time buyer ?

P

pandt2306

Guest
Hi
Apologies for another Stamp Duty question, but I am not sure about Stamp Duty in the scenario below

I am buying a new house, max. size 1,800sq.ft, to become my primary residence and I may or may not sell my existing property (which is my current primary residence).

I have been told that I am exempt from Stamp Duty if the house I purchase is a newly constructed house but I am liable for stamp duty if the house is second hand.
Is this correct or are there other condition such as house size that may make me liably for stamp duty

Thanks in advance and again sorry for another stamp duty question.
 
Stamp duty is not chargeable for owner occupiers on a new build up to 125sq.mts. After that it is payable based on the size of the house or the plot whichever is the greater. VAT is deducted from the purchase price of a new build when assessing stamp duty liability. There are lots of threads on this..why not try a search?
 
liteweight said:
Stamp duty is not chargeable for owner occupiers on a new build up to 125sq.mts. After that it is payable based on the size of the house or the plot whichever is the greater. VAT is deducted from the purchase price of a new build when assessing stamp duty liability. There are lots of threads on this..why not try a search?
Click to expand...

Thanks 'liteweight', had a look around but I am still confused.

I got the table below from daft.ie
With regard to new homes over 125sqm it states the following
If the property is over 125 square meters or you're an investor, the stamp duty is calculated from the table below using whichever of the following two values is greatest:

A. The cost of the site OR
B. 25% of (the cost of the site + the building costs less VAT @ 13.5%)

Value: Non-investors Investors:
€1 - €127,000 0% 0%
€127,001 - €190,500 0% 3%
€190,501 - €254,000 0% 4%
€254,001 - €317,500 0% 5%
€317,501 - €381,000 3% 6%
€381,001 - €635,000 6% 7.50%
€635,001+ 9% 9%
Click to expand...
My question is
What is the cost of the site or 25% of (the cost of the site + the building costs less VAT @ 13.5%) ?

If I see a new build or a new development in an auctioneer’s office grater than 125sqm for under €317,500 and I am a non investor am I exempt from stamp duty?
 
If a new build or second hand house is 317,500 then you are exempt if you're a first time buyer.

Below is an example which might help you understand your first question.


An owner occupier (who is not a first time buyer) buys a new house for €800,000. The site element is €150,000. The house is too large to qualify for exemption under s.91. However, it qualifies for relief under s.92. Duty is payable on €200,000 @ 4% = €8,000 (i.e. duty is payable on 25% of the cost).
If the site element were €250,000 instead of €150,000, duty would be payable on €250,000. The amount payable by an owner occupier who was not a first-time buyer would be €250,000 @ 4% = €10,000.
Click to expand...
 
The answer to this lies with the developers, generally new builds are structured (in my experience) in such a way that you are 'sold the site' and 'charged for building' this way neither adds up to a stamp duty-able purchase.

But I guess there's a price point at which this won't work. A good property solicitor will clarify that for you.
 
garrett2 said:
The answer to this lies with the developers, generally new builds are structured (in my experience) in such a way that you are 'sold the site' and 'charged for building' this way neither adds up to a stamp duty-able purchase.

But I guess there's a price point at which this won't work. A good property solicitor will clarify that for you.
Click to expand...

This does not negate the fact that if the property is over 125sq.mts., stamp duty becomes payable in most cases.
 
liteweight said:
This does not negate the fact that if the property is over 125sq.mts., stamp duty becomes payable in most cases.
Click to expand...
Are you sure about that? I thought that where the > 125sqm rule kicked in (with the taxable consideration determined by the site value or building costs) then it meant that properties up to c. €500K were effectively still exempt from SD for (FTB?) owner occupiers? Can't remember the details but that was the general gist.
 
ClubMan said:
Are you sure about that? I thought that where the > 125sqm rule kicked in (with the taxable consideration determined by the site value or building costs) then it meant that properties up to c. €500K were effectively still exempt from SD for (FTB?) owner occupiers? Can't remember the details but that was the general gist.
Click to expand...

Sorry I didn't make myself very clear.

from revenue website
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...

You're probably correct Clubman, a quarter of 500k would leave the purchaser below the 127k exemption limit. However, I haven't seen too many properties greater than 125sq.mts. being sold for 500k.:( That's what I meant when I said stamp duty would become liable in most cases!
 
pandt2306 said:
If I see a new build or a new development in an auctioneer’s office grater than 125sqm for under €317,500 and I am a non investor am I exempt from stamp duty?
Click to expand...

The answer to the above is:

Certainly yes you would be exempt from an "aggregate consideration", given that €317k/4 =€79k, which is below the €127K threshold, even without looking at the VAT element reduction.

[broken link removed]
 
Are you sure it is 25% of [site cost (less VAT) + building cost (less VAT)]?

and not

25% of [site cost (less VAT)} + building cost (less VAT)?

techman
 
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