Claw Back

[Annabell]

We purchased our first property less than 5 years ago and have now purchased a second property which will be our home. We are renting out our first property, therefore we will have to pay the 'clawback' stampduty. Does anyone know how this is calculated say on a property for €190,000.
As this property was under 125M2 would we not be excempt from Stamp Duty anyway?
If we do have to pay this clawback fee is there anyway we can write it off?

 

[ClubMan]

Does anyone know how this is calculated say on a property for €190,000.

At it would be 3% or €5,700. You'd need to check what the applicable SD rates were at the time of purchase. Note that the clawback is an all or nothing thing and does not decrease pro-rata as the five year period elapses.

As this property was under 125M2 would we not be excempt from Stamp Duty anyway?

No - that is irrelevant to an investor purchase of the property.

If we do have to pay this clawback fee is there anyway we can write it off?

You can offset it against your capital gains bill if/when you sell the property for a profit and have a CGT liability on some portion of the gain.

 

[qwerty123]

I've a similar siutation to Annabel above.

I purchased a new property 4 years ago as a FTB (paying no stamp duty as a FTB). I have recently purchased a new apartment due for completion soon.

I intend on moving into apartment as an owner occupier (paying no stamp as a owner occupier in a new build of less then 125 sq. metres). I intend to leave the first property empty (un-rented) until 5 years are up. Will I be liable for stamp duty on either property?

 

[ClubMan]

Will I be liable for stamp duty on either property?

No. If you are near the 5 year cut-off point for the clawback then it makes sense to hang on until it expires to avoid the SD clawback.

Obviously the former PPR will become an investment property from then on and the normal tax treatment (including the possibility of CGT on some portion of any eventual resale gain) will apply.