Will I really have to pay stamp duty?

So here's the situation, second time buyer who is buying a 4 bed detached in a new development. Houses are listed as having all the features and one of them is "No stamp duty for owner occupiers".

The house is 143.99 Sq.m and when I check the revenue.ie website it says that on new houses where you are an owner occupier that stamp duty should be paid on properties over 125sq m, So I emailed the agent selling these and they said "There is no stamp duty payable on this property for owner occupier, the stamp duty is determined by the site value"

Is this a guarantee? I somehow feel like I will sign contracts and then be loaded with a stamp duty bill and have no come back, can I use the agents reply as proof and take legal action if I have to pay stamp duty?

Is this a guarantee?

No.

can I use the agents reply as proof and take legal action if I have to pay stamp duty?

No.

Ask for the figures from the EA, work on that basis. Talk to your soklicitor. If the contracts subsequently come through with different figures, walk away or work out your liability.

mf

Over Floor Area of 125 sq. m

New houses or apartments with a floor area greater than 125 square metres, which are purchased by an owner occupier are charged with duty on either the site value (excluding VAT) or one quarter of the total cost of the house and site (excluding VAT), whichever is the greater figure.

A qualified architect, engineer or surveyor must certify the size of the floor area.

Click to expand...

So, normally this is calculated by reference to the 25% of the house and site.

Does your property price exceed €600K (€125K*4)

or

is the value of the site in excess of €125K.

The developer would have a certificate to certify floor area of the house(s) in the development.

see here

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...

Stamp duty rates on residential property from 5 December 2007

New houses and apartments with a floor area greater than 125 square metres and a Floor Area Compliance Certificate

Chargeable consideration Owner occupier
Up to €125,000 Exempt
Next €875,000 7%
Balance 9%

Click to expand...

My friend sold her house about 2 years ago and bought a new 4 bedded. I 'think' the reason she did not have to pay stamp duty was because she was an owner occupier AND that it was her only house.

You may or may not have to pay stamp duty depending. If your Auctioneer said it is judged by site that means that probably the site is valued at or around 140K (take away vat site is €127,00 or under so no stamp duty) They can only take into consideration the price of the site however if it is greater then 1/4 of the value of the whole property so if the property costs 580,000 or more then it is likely you will pay stamp duty. It may only be a small amount. I wouldn't rely on the Auctioneers word but when the Solicitor recieves the contract they will know if stamp duty is payable or not so best to ask Solicitor before signing.

Thanks BK2, the property cost 360k so its likely then I won't have stamp duty, the solicitor received contracts today so I will check next week with her, appreciate everyones feedback.

If its costing 360k I think you can rest assured that there is no stamp. Have it confirmed, but believe it or not EA's don't just say it for the sake of it.

MrMan said:

If its costing 360k I think you can rest assured that there is no stamp. Have it confirmed, but believe it or not EA's don't just say it for the sake of it.

Click to expand...

Yes, but the inevitable small print along the lines of 'nothing the EA says is in any way legally binding, and is responsibility of purchaser to verify...' covers everything and anything.