Working example of SD on New build

R

River

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Hi All,
Tried searching for this but my search isn't working today?

Just want to try work out the following as am looking to buy trade up shortly. Some properties in mind are new build houses which are over the 125sqm limit. So I was trying to work out how the calculation is done.

I found the following on the revenue.ie

"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."


First question the above poses is; What is the rate of VAT on new builds? Saw 13.5% on a website but couldn't find any hard facts? I will use 13.5% in below example. PLease correct me if I'm wrong.

So if I wanted to buy a property that cost 600k and was 140 sqm. Is the following the correct calculation

cost: 600k
Cost ex VAT: 519K
x 1/4: 129.75k
x 7%: 9.082k

Is this correct? About 9k SD for a new build that costs 600k & exceeds 125sqm.
 
If you are buying a new build the developer will put a value on the site and a value on the house itself. The revenue states that SD is due on whatever is the greater of (site excluding VAT) or ( 1/4 * site/house excluding VAT). I think also the first €125,000 is excluded from SD.
 
plant43 said:
If you are buying a new build the developer will put a value on the site and a value on the house itself. The revenue states that SD is due on whatever is the greater of (site excluding VAT) or ( 1/4 * site/house excluding VAT). I think also the first €125,000 is excluded from SD.
Click to expand...

Sorry forgot to mention that I also worked on the assumption that value of site+house was greater.

I would be interested to know how the calculation works either way.

Also, you mention the €125k, I also assumed this was not relevant here. You could take it into account in a few different ways in my example (again assuming site+house is greater)

cost: 600k
Cost ex VAT: 519K
- 125k: 394k
x 1/4: 98.5k
x 7%: 6.895k

or

cost: 600k
Cost ex VAT: 519K
x 1/4: 129.75
-125k: 4.75k
x 7%: 0.3325k

or

cost: 600k
-125k: 475k
Cost ex VAT: 410.875K
x1/4: 102.72k
x 7%: 7.19k

Still a few variables that need to be confirmed.
Should VAT be excluded?
If so, at what rate?
Do we include 125k allowance?
If so, at what point does it enter the calculation?
Is 7% the correct stamp duty rate?
How does the calculation work for site only? Simply eliminate the x 1/4 step?
 
This has been covered elsewhere and (AFAIK) you will pay:

7% of (129.75k - 125k)

i.e. 7% of 4.75K

i.e. 332 euro
 
Eamonn is correct unless the site costs more than 1/4 of the purchase price. VAT is always charged on developed sites. So if the site cost is more than 1/4 of the purchase price you take the VAT off the site cost, deduct 125000 then pay 7%.

Most large houses in the commuter belt have site fines considerably more than 1/4 of the purchase price.
 
i bought a site with full planning and attached a building agreement, when stamp duty was being calculated vat was never taken off the building price or site, should this have been done by the solicitor
 
ramble said:
Eamonn is correct unless the site costs more than 1/4 of the purchase price. VAT is always charged on developed sites. So if the site cost is more than 1/4 of the purchase price you take the VAT off the site cost, deduct 125000 then pay 7%.

Most large houses in the commuter belt have site fines considerably more than 1/4 of the purchase price.
Click to expand...

So lets say, cost of house is 600k and site value is actually 200k. Calculation is as follows;

Site Cost: 200k
ex Vat: 173k
-125k: 48k
x 7%: 3.36k

Is this correct? Sorry for being pedantic about this.
 
Small point on your calcs:

you are not subtracting VAT correctly.

If you have a figure of 200k incl VAT and you want to know how much it was excluding VAT, and assuming VAT = 13.5%, the calc should be:

(200000/(100+13.5)) /100

or to put it more simply

200000/1.135

= 176211

not

(200000*(100-13.5))/ 100


or more simply

200000*0.865

= 173 k (wrong).

Doesnt make much difference but might save puzzlement if you can't get figures to match up.
 
eamonn123456 said:
Small point on your calcs:

you are not subtracting VAT correctly.

If you have a figure of 200k incl VAT and you want to know how much it was excluding VAT, and assuming VAT = 13.5%, the calc should be:

(200000/(100+13.5)) /100

or to put it more simply

200000/1.135

= 176211

not

(200000*(100-13.5))/ 100


or more simply

200000*0.865

= 173 k (wrong).

Doesnt make much difference but might save puzzlement if you can't get figures to match up.
Click to expand...


yep, cheers.
 
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