Simple Question re Stamp Duty

I

ifah

Guest
Hi all,

Just a simple question - I'm thinking about purchasing an apartment as an investment and am currently looking at all of the facts and figures.

My query is in relation to Stamp Duty on this apartment.
The apartments start at €235000 but the one i'm interested in is €260000 (just above the 4% threshold) but I see that you are exempt from paying stamp duty on the VAT. Should I then take the 21% vat off this to calculate what band it fits into and therefore my amount payable to revenue?

Cheers,
if
 
ifah said:
Hi all,

Just a simple question - I'm thinking about purchasing an apartment as an investment and am currently looking at all of the facts and figures.

My query is in relation to Stamp Duty on this apartment.
The apartments start at €235000 but the one i'm interested in is €260000 (just above the 4% threshold) but I see that you are exempt from paying stamp duty on the VAT. Should I then take the 21% vat off this to calculate what band it fits into and therefore my amount payable to revenue?

Cheers,
if
Click to expand...

VAT on the property would likely be 13.5%
 
for revenue / stamp duty purposes it looks likely that that the VAT portion can only be taken off a new property .
 
Hi Ifah

Yes , I did this, as long as the price states inc VAT on the contract,
My solicitor then took off the VAT and then charged stamp duty to this sum.

Instead of adding on Stamp duty on the entire sum.

She said that we cant be charged tax on a tax.
So no rule is being broken.
 
Thanks for all of the replies - the property is being sold inclusive of vat so it looks like i'll be saving myself a few thousand.

Thanks for all the replies.
 
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