Is the Stamp Duty promise now policy?

If you are buying a site and entering a contract to have a house built on that site, you are treated as if the entire contract is for the purchase of the property and the stamp duty is applied accordingly.

If you are building yourself, then there is no stamp duty on the house part but there is stamp duty on the site (the 80k is not under the limit as the site is not residential property and would be subject to stamp duty at 5%).
 
So my self build ill be paying 8% site value €120,000. €9,600 no help for us poor self builders.:(
 
So my self build ill be paying 8% site value €120,000. €9,600 no help for us poor self builders.:(

If you are buying the site, yes.

If you are getting the site as a gift, the site exemption might apply.
 
Hi
Just to clarify one point. For First-time Buyers,
Under existing provisions, no stamp duty is paid on houses or apartments worth less than €317,501. Between that figure and €381,000, 3 per cent is paid. On houses between €381,001 and €635,000, the rate is 6 per cent; for houses or apartments over that figure, the rate is 9 per cent.
The new measure will abolish stamp duty for all first-time purchasers.

This includes all houses above 125sqm and no limit to price.

Regards

Paraic

www.obrienfinlay.ie
 
They would obviously rather keep the existing system which encourages people to commit fraud

I totally agree with you. The amount of people I know at work that are getting "advice" from solicitors to avoid stamp by trying to buy in wifes name etc is crazy. When you are talking about 9% on a million or more you just asking for people to try and commit fraud.


Will the revenue go after the tax evader/avoiders?
 
Removing a price limit benefits super-rich ftbs unfairly, the average FTB might be looking at 300-500.

The average FTB is well below the previous limit of 317.
 
Thats exactly the point - why create a law that can only benefit FTBs that are rich. Or Married Couples that feel two spouses mean two FTB exemptions. Plenty of poeple think its OK to try and use FTB on each spouse, ie there second house purchase.
 
And how many houses are worth 1m? Not many in the country as a whole. How many will be bought by FTBs? A fraction. Between 5 and 8% of FTBs in 2006 were above the 317 threshold. That's before you even go up to crazy figures like 1 mill.
 
And how many houses are worth 1m? Not many in the country as a whole. How many will be bought by FTBs? A fraction. Between 5 and 8% of FTBs in 2006 were above the 317 threshold. That's before you even go up to crazy figures like 1 mill.
Well, if that's the case, can you explain why there was no limit imposed?? It's absolutely stupid not to have a limit imo - if as you say only a small % of FTB's pay more than 317K anyway, what was to stop them putting a limit say, 50% above that, like 450K for example.
It's just another example of shoddy ill thought legislation introduced by a man I used to think was quite competent.
 
Perhaps it is quite clever. Suppose you had lots of friends who had off spring who wanted to buy beautiful houses ( no 317K limits for them!) but hated paying stamp duty? What better way of pleasing them? In reality, the number of FTB's who will have access to huge wads of cash or big mortgages has to be relatively small.

A stroke of genius perhaps?

mf
 
Well, if that's the case, can you explain why there was no limit imposed?? It's absolutely stupid not to have a limit imo - if as you say only a small % of FTB's pay more than 317K anyway, what was to stop them putting a limit say, 50% above that, like 450K for example.
It's just another example of shoddy ill thought legislation introduced by a man I used to think was quite competent.

Because "Stamp Duty removed for FTBs" sounds much, much better than "Stamp Duty limit increased for FTBs". Its a stunt, plain and simple. How could it be otherwise, when the vast majority of FTBs don't need SD assistance. They can't buy houses because they can't afford them at current prices anymore, nothing to do with SD.
I just don't understand how the average FTB can be helped in any way, short of giving them money!
 
How is it a side effect that average FTBs stay out of the market?
I think there's a danger that some potential FTBs will not want to waste their stamp duty exemption to purchase a starter home. Many FTBs were previously buying with the exception of trading up in the near future as these were the only properties they could afford. Having FTB status has suddenly become a lot more valuable though! Some FTBs could be tempted to continue holding onto this status, and rent in the meantime, until they come across the house that they see themselves living the rest of their lives in.
 
If a married couple wants to buy a house in one name to be a FTB (for let's say the first apartment in one name and then the first house later in the other name) how is that fraud. It's not illegal. It's called common sense and avoiding paying tax.
 
If a married couple wants to buy a house in one name to be a FTB (for let's say the first apartment in one name and then the first house later in the other name) how is that fraud. It's not illegal. It's called common sense and avoiding paying tax.
This sounds illegal to me. Since the buyer of the apartment would have a beneficial interest in the purchase of the house, Revenue would not give FTB status for the purchase of the house. Declaring otherwise would be tax evasion.
 
I wouldn't think there's anything illegal about it, it is however very risky from a personal perspective, trust......
 
It is illegal if you avoid paying SD in the manner above. All contributors to the cost of the house must be FTBs, not just the person on the deeds.
 
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