Non payment of stamp duty

L

Lyndan

Registered User
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250
Hey All,

Myself and my hubbie are thinking of going off to Singapore for a couple of years, and after weighing up all the pros and cons we are selling our apartment and going to bank the money and buy again when we come back. When I called about the stamp duty we would owe if we rented instead of sold I was told we would owe €19,200! PP - €320k, signed deeds in 2005!

Over the weekend at a party we were discussing it with friends and it turns out that lots of my friends who rent out their first homes have not paid this stamp duty and some have no intention of doing so....

Im so frustrated so i just needed to vent!

Would you ever report anyone for non payment?
 
Lyndan said:
Would you ever report anyone for non payment?
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Probably not - but I would make their liability very clear to them and express my opinion in, let us say, robust terms. Happily, my friends generally either take the same views on tax evasion as I do, or are sufficiently nervous of the consequences, so the situation hasn't arisen.

If, having told someone what their liabilities were, they still don't correct the matter, I'd sit back and wait for the wonderful moment of Schadenfreude when the stamp duty enforcement brigade comes home to roost, and at least a number of them are stuck for Stamp Duty, several years' interest, and accumulated penalties. It'll happen.
 
yes I would be the same I think, I dont think I would actually report anyone but I would like to think I am the type of person who would! Does that make sense!

Its so annoying that I cant keep my apartment and others can, Its not like id even been making money on it, I would have to put to the rent to make the mortgage,
 
Lyndan said:
yes I would be the same I think, I dont think I would actually report anyone but I would like to think I am the type of person who would! Does that make sense!
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Yup. Thought about exactly that in posting my reply ;)
 
ClubMan said:
Hopefully such tax evasion will be dealt with sooner rather than later as it's a genuine rip-off perpetrated against compliant taxpayers.
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If it's later rather than sooner then the Revenue will collect more money in larger penalties. This is a point Lyndan could also make to her friends; just in case they think any current inaction by Revenue means they will get away with it.
 
I really argued it with my friends, I think i scared a lot of them!! Im sure they left thinking that i was going to report them...bet some of them get caught out now and think it was me!

I argued the moral issue and some people said it was not moral to report people and they wouldnt do it to their worst enemy - I suppose people have different views on what is morally right or wrong.

On a serious note, can you believe I would owe €19,200k to rent out my place!
 
Lyndan said:
On a serious note, can you believe I would owe €19,200k to rent out my place!
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Yes - 6%. You benefited from owner occupier relief from SD on buying it but are now considering becoming a landlord/investor. If this clawback did not exist the everybody would be buying as an ostensible owner occupier and then dodging investor SD by renting out.
 
I thought you are only subject to stamp duty clawback for 5 years if the house was your PPR. So in your case, depending on when in 2005 you bought the house you would only have to pay for 3/5 years so that would be €11,520. Its still a lot of money but better than 19K.
Cn anyone verify if this is the case?
 
No you have to pay stampduty if you rent it out within 5 years of owning it.

To the OP, I was in a similiar situation as yourself, I paid the stamp duty, in fairness if you rent out the property its not a business or investment. The free stamp duty is to help first time buyers not investors. If the rule didnt exist the market would be flooded with investors and you wouldnt have been able to buy the apartment in the first place.
 
homeowner said:
I thought you are only subject to stamp duty clawback for 5 years if the house was your PPR. So in your case, depending on when in 2005 you bought the house you would only have to pay for 3/5 years so that would be €11,520. Its still a lot of money but better than 19K.
Cn anyone verify if this is the case?
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Wrong I'm afraid, you have to pay the lot. I think you're confusing it with capital gains tax where the years the property was PPR can be deducted?
 
Lyndan said:
On a serious note, can you believe I would owe €19,200k to rent out my place!
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If the property was second hand, you would only have to pay the 3% you were exempt ie. €9,600
If it was new, you would have to pay the full amount
 
If you don't pay the stamp duty you owe you are stealing. You are guilty of tax evasion, just like the politicians that we all love to hate. It's as simple as that.
 
Purple said:
Yea, the ones who are guilty of tax evasion.
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Yes, all three of them

Lyndan said:
Hey All,

Myself and my hubbie are thinking of going off to Singapore for a couple of years,
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You should get professional advice from a tax specialist to investigate if it is possible for you to legitimately claim the rent a room allowance if for example the property can remain your ppr at all times and the rent you receive is under the specified threshold.
 
Lyndan said:
Would you ever report anyone for non payment?
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No need. They'll report themselves eventually. Rent out house, tenant wants Rent Allowance. Landlord completes form and pay tax on rental income. Note put on Landlords tax file that he is collecting rent from 1, First House Street, Dublin.

8 years time Landlord decides to sell house and seeks Declaration from Revenue re CGT. Person processing form notes house was rented out and notifies Stamping Office. 8 years interest and penalties.

Also the tenant is obliged under leglislation to deduct tax from rent paid to non resident landlords and submit same to Revenue.
 
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