stamp duty

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techman

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I am thinking of purchasing a new house costing €270K.

I have had a look at www.revenue.ie for the latest stamp duty rates.


Less than €127,000
Exempt
Exempt
Exempt

€127,001 - €190,500
Exempt
Exempt
3%

€190,501 - €254,000
3%
Exempt
4%

€254,001 - €317,500
3.75%
Exempt
5% - full rate

€317,501 - €381,000
4.5%
3%
6%

€381,001 - €635,000
7.5%
6%
7.5%

Over €635,000
9%
9%
9%



I am not a FTB and the floor area of the new house exceeds 125sq.m

Is the stamp duty liability therfore 5% (full rate) of €270K?

Or is it based on the following?

·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
 
techman said:
Is the stamp duty liability therfore 5% (full rate) of €270K?

Or is it based on the following?

·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...

The latter. See :
Stamp duty on new houses and apartments

Owner-occupiers of new houses/apartments are exempt from stamp duty, provided that the area of the house or apartment does not exceed 125 sq. metres (1,346 sq. feet) and a has been issued.

...

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...
 
One last question on stamp duty:

The purchase of my current home was closed in 2004 (purchased as a FTB, new, floor area <125sq.m).

If I rent my current house, I know there my be a clawback of stamp duty:

"If the first-time buyer rents the house within five years Revenue will claim back or 'clawback' the difference between the higher stamp duty rates and the duty actually paid."

My question is does the "higher stamp duty rates" mean that I would now be treated as an investor at the time of purchase and therefore liable for stamp duty at the investors rate at the time of purchase in 2004?

Or, how would the clawback be calculated?

The purchase price at the time was in the €127,001-€190,500 bracket and I am going from the date the sale was closed i.e. "the date of the purchase deed" as referred to at www.oasis.gov.ie

"A stamp duty 'clawback' arises where rent, other than under the 'Rent a Room scheme' is obtained within the five year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of obtaining the benefit of the reduced rates."
 
techman said:
My question is does the "higher stamp duty rates" mean that I would now be treated as an investor at the time of purchase and therefore liable for stamp duty at the investors rate at the time of purchase in 2004?
Click to expand...

Yes - that is correct.
 
Right, thanks again Clubman.

Looks like if I do rent there will be a clawback of 3% of the house price at the time of purchase.

I couldn't find the 2004 stamp duty rates anywhere, but I did get the 2003. I don't think there was a change in Budget 2004.
 
I can't find the rate of stamp duty that an investor would pay on a new house <125 sq. m.

I can find the rate an investor would pay on a secondhand house = 3%

Is it the same for a new residential property?
 
The floor area is irrelevant for investors. The stamp duty payable by investors is determined solely by the value of the property. The same rates that apply to non first time buyers of second hand houses apply to investors whether the property is new or second hand. See the second last stamp duty rate table on .
 
It says on Oasis that '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'

What is the relevant exemption threshold for a owner occupider of a new house?
 
The first table in the OASIS link has the answer. €317,500 for first time buyers and €127,000 for other owner occupiers.
 
"The floor area is irrelevant for investors. The stamp duty payable by investors is determined solely by the value of the property. The same rates that apply to non first time buyers of second hand houses apply to investors whether the property is new or second hand. See the second last stamp duty rate table on OASIS."

Clubman, are you sure about the above?

According to this site, an investor who buys a new property with a floor area under 125 sq.m is exempt from stamp duty. If this is the case, I could therfore rent my home and not be liable for a clawback of stamp duty as it was purchased new and under 125 sq.m

Note the third table:

[broken link removed]
 
techman said:
"The floor area is irrelevant for investors. The stamp duty payable by investors is determined solely by the value of the property. The same rates that apply to non first time buyers of second hand houses apply to investors whether the property is new or second hand. See the second last stamp duty rate table on OASIS."

Clubman, are you sure about the above?

According to this site, an investor who buys a new property with a floor area under 125 sq.m is exempt from stamp duty. If this is the case, I could therfore rent my home and not be liable for a clawback of stamp duty as it was purchased new and under 125 sq.m

Note the third table:

[broken link removed]
Click to expand...


Do you believe information on Oasis, a government info site or some random auctioneers site?

See also the Revenues guide to stamp duty
[broken link removed]

Both Oasis and Revenue refer to Owner occupiers for the <125 sq. m exemption and explicity refer to clawback if it is rented within 5 years.
 
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