What's happens if a 1 st time buyer sells within five years?

B

breaks

Registered User
Messages
31
Hi,
What happens if a 1st time buyer sells within five years?
Are the penalised at all?
Cheers
 
Not if the property was their home for that period. You may be confusing this with the stamp duty clawback applicable when somebody who buys as an owner occupier subsequently rents the property out as a rental/investment property within 2 years (used to be 5).
 
Hello,

I found this information on the Revenue website - www.revenue.ie

For the full article - [broken link removed]

I hope it is of some use,

Alan

Who is a first time buyer?

A first time buyer is a person, (or, where there is more than one buyer, each of such persons):
  • who has not on any previous occasion, either individually or jointly, purchased or built on his/her own behalf a house (in Ireland or abroad) and
  • where the property purchased is occupied by the purchaser, or a person on his behalf, as his/her only or principal place of residence and
  • where no rent, other than rent obtained under rent a room arrangements, is derived from the property for a period of two years from the date of the purchase. This relief is subject to clawback provisions.

    Prior to 5 December 2007, the period where no rent could be obtained was five years. Under the Finance Act 2008, this period has been reduced from 5 years to 2 years for deeds executed on or after the 5 December 2007.

    For instruments executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on or after 5 December 2007, it will not involve a clawback of the relief where this occurs in the third, fourth or fifth year of ownership.
What are the rent a room provisions?

Under this scheme there is no clawback of the first time buyer relief where rent is received by the person in occupation of the house, on or after 6 April 2001, for the letting of furnished accommodation in part of the house.
Provided that the purchaser continues to occupy the house as his or her PPR for the relevant period, a clawback of stamp duty will not arise even where the rent received is in excess of the annual threshold which applies for income tax purposes. This threshold has been increased from €7,620 to €10,000 for the tax year 2008

When does a clawback arise?

A clawback arises if rent is obtained from the letting of the house other than under rent a room provisions. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property.
 
You must log in or register to reply here.
Back
Top