confused by stamp duty

I

insane

Guest
hi,

i purchased a place a year and a half ago as first time buyer for roughly 160k.
As first time buyer i did not pay stamp duty, can't remember if i was exempt because it was under a certain value. I know that you were supposed to live in the property for five years or you had to pay back stamp duty ? Recently, I heard this was reduced to two years, but mortgage advicer says it is still 5 years..really confused. I mean, if i rent the place out or sell am I still liable for this stamp duty ? how do I calculate this stamp duty ?

Any replies would be great !

Cheers
 
Mortgage advisor is wrong.

If you rent the property within two years, you pay back the full amount of Stamp Duty that would have applied 18 months ago.

If you sell the house having lived in it as your home since you purchased it, there's no Stamp Duty clawback.
 
LDFerguson said:
If you rent the property within two years, you pay back the full amount of Stamp Duty that would have applied 18 months ago.
Click to expand...
Just to clarify - the full amount of SD that would have applied to an investor purchaser of the property.
 
Thanks for replying !

Think I almost understand. Is it the case that although I was exempt from Stamp Duty as property was under 317K, that an investor would have had to pay stamp duty as he would have bought for speculating etc, so if I rent it out now I will be deemed an investor should that I would be liable for the full amount of stamp duty,despite having lived there for 18 months ?

If the above is true, how do I Know how much stamp duty would have been applicable to a value of 160K ?

Thanks for your thoughts, as I really need to give up the commute :(

The current rate is

Stamp duty rates for buyers other than first time buyers of second hand properties

Less than EUR127,000 Exempt
EUR127,001 - EUR190,500 3%

so I would owe 3% of 160K = 4.8 K (would I owe this ? )

Cheers

-D
 
Why dont you just wait another six months before you rent it out and then you wont have to pay any stamp duty as per the changes in the last budget. AFAIK the time was reduced from 5 years to 2 years.
 
Stronge said:
Why dont you just wait another six months before you rent it out and then you wont have to pay any stamp duty as per the changes in the last budget. AFAIK the time was reduced from 5 years to 2 years.
Click to expand...

Is this for people who bought in the past 5 years or only in the past 2 years?
 
O.K Hopefully we are getting there, still a little confused on the 3 points below :


1.

"Is this for people who bought in the past 5 years or only in the past 2 years?"

Thats exactly what is confusing, the law changed after I purchased. Can this change in policy be back fitted to mortgages already up and running before change in policy ?

It was 5 years when I purchased but does the reduction to 2 years apply to me ?!

2.
Is it the case that although I was exempt from Stamp Duty as property was under 317K, that an investor would have had to pay stamp duty as he would have bought for speculating etc, so if I rent it out now I will be deemed an investor should that I would be liable for the full amount of stamp duty,despite having lived there for 18 months ?

3.
Do I need to look into stamp duty ratesfor year in which I purchased for the for applicable rate/ or is this the rate currently in play ?


Thanks,

-D
 
1. The reduction to 2 years applies to you.

2. An investor would have had to pay Stamp Duty of 3% on a €160,000 house 18 months ago, i.e. €4,800.

3. It's the rate that applied 18 months ago - it's 3%.

Stay living in the house for another 6 months, or at least don't rent it out and all your problems will be solved.
 
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