FTB but my BF is not: Buy 2ndH hse wt parent guaran & then remortge -avoid stampduty.

[AOR]

Paying towards the mortgage is counted as contributing to the purchase monies as your monthly repayments are paying the capital cost of the house over the duration of the mortgage.

What exactly are you basing this on? The term "purchase monies" doesn't appear once in the Stamp Duties legislation. The legislation refers only to the "consideration" being paid in respect of the land, the dwelling house or the apartment in question. Consideration has a very specific legal definition. Stamp duty is a revenue raised by means of stamps attached to written instruments, eg a lease or conveyance, based on the value or consideration for the instrument. It strikes at the time the instrument is executed. It would therefore be struck at a time when my boyfriend is neither a party to the transaction/instrument nor contrubuting to the mortgage. The fact that he would subsequently come onto the mortgage after the event and start contributing to the "purchase monies", as you put it, is neither here nor there from a stamping point of view.

 

[AOR]

Rent-a-room scheme also requires separate dedicated sleeping quarters for the individual renting which means cohabiting couples are ineligible.

All I'm saying to you is to be careful about the advice you receive. I assure you that Revenue has come across this situation on many occasions and is experienced at telling the difference between cohabiting and genuine rental situations.

I wasn't suggesting that we'd avail of the rent a room scheme under false pretences. I was just referring to the rent a room scheme as the only scenario where Revenue will attempt to claw back FTB relief. I.e. there doesn't appear to be any provision whereby Revenue can claw back FTB relief where a non FTB comes onto the mortgage some time after the property has been purchased.

 

[DerKaiser]

What exactly are you basing this on? The term "purchase monies" doesn't appear once in the Stamp Duties legislation.

[broken link removed]

 

[AOR]

[broken link removed]

That's a Revenue leaflet about stamp duty legislation. It contains guidelines on the legislation. As guidelines however they have no legal standing.

Look at the legislation. The term "purchase monies" does not feature once.

 

[niceoneted]

Just go through the whole process and get advice from your solicitor along the way.
If you don't get a bill for stamp duty in the end you'll get your answer. A lot of these things are down to who you deal with on the day!

I'm with the other posters who say your BF would be foolish to take responsibility for the mortgage without a legal right. - We have see all too many threads on this on this and other forums.

 

[truthseeker]

OP - have you actually asked a bank/solicitor what they think about the scenario you are proposing? You bf would also need to ask seperately as he is the one carrying the most risk if you go through with it.

 

[AOR]

OP - have you actually asked a bank/solicitor what they think about the scenario you are proposing? You bf would also need to ask seperately as he is the one carrying the most risk if you go through with it.

No. I don't intend going through with this. Just thought it would make an interesting talking point. I suspect most solicitors would be hesitant to get involved. It might be within the law technically but I don't think it's within the spirit of it. There's a fine line between evasion and avoidance. I'm happy to pay taxes and play by the same rules as everyone else.

Secondly, I'm not sure that the second stage of the plan is feasible, i.e. getting a bank to agree to my boyfriend going co-mortgagor on a property where he's not on title.

Also, someone else made a good point earlier that the valuation may have decreased by the time it comes round to getting the second mortgage in which case there wouldn't be enough money to pay off the first.

 

[csirl]

Section 811 of the Taxes Consolidation Act is Revenue's "catch all" any avoidance clause. It covers stamp duty and allows Revenue officials to take a view that tax is being avoided based on the individual circumstances.

Myself and my boyfriend are planning on buying a house next year.

The OP's original question was that she and her bf are planning to buy a house. What she is seeking advice on is how to avoid paying stamp duty that is legitimately due on the transaction.

 

[AOR]

The OP's original question was that she and her bf are planning to buy a house. What she is seeking advice on is how to avoid paying stamp duty that is legitimately due on the transaction.

No. I don't intend going through with this. Just thought it would make an interesting talking point. I'm happy to pay taxes and play by the same rules as everyone else.

As above

 

[AOR]

Section 811 of the Taxes Consolidation Act is Revenue's "catch all" any avoidance clause. It covers stamp duty and allows Revenue officials to take a view that tax is being avoided based on the individual circumstances.

Good point