Advice on house sale

P

peterwilson

Registered User
Messages
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Hi
I bought a house with my brother 4 1/2 years ago.
We plan to sell next year (exactly 5 years after purchase)

We were first time buyers at the time.

He has bought another house with his girlfriend (3 years ago) and I have bought another house (1 year ago) with my girlfiend (although dont live there with her).

I've heard talk of a Stamp Duty clawback. What is this? And does it apply to us?

Also will we be liable for Capital gains tax?
I've been living in the house and renting out one room.

Thanks
PM
 
Also our TRS is at the original house.
Should TRS always be at your Principal Primary Residence?
Thanks!
 
Yes TRS is on your PPR.

A stamp duty clawback arises when a FTB rents the property before owning it for 5 years, (excluding the rent a room scheme AFAIK).

Try a search on AAM as there are lots of threads on this topic. Also try www.revenue.ie
 
Stamp Duty clawback applies if you rent out the property within 5 years of selling. As long as you are renting out a room in accordance with the Rent-a-Room scheme, there is no clawback.

TRS only applies to your PPR. Mortgage interest can be offset against rental income on an investment property.

There should be no CGT in your case, but if your brother has been living elsewhere for more than 12 months prior to disposal, there may be some liability in his case.

Disclaimer-I am not a tax expert,and given that this probably isn't as straightforward as it looks (especially when there are second properties invloved), you may want to consult a professional.
 
You bought a house a year ago with your girlfriend but don't live there? In what sense did you buy the house, are you on the deeds and paying the mortgage? Revenue would definately be suspicious the whole secenario you've painted. That's not to say you're not in the clear. There are a umber of threads in the Taxation section which ramble on about the scenario where one part owner rents out their room and whether stamp is due. No defintive conclusion ever seems to be reached, a very grey area. Talk to a professional, and be sure to give them ALL the facts.
 
Howitzer said:
You bought a house a year ago with your girlfriend but don't live there? In what sense did you buy the house, are you on the deeds and paying the mortgage? Revenue would definately be suspicious the whole secenario you've painted. That's not to say you're not in the clear. There are a umber of threads in the Taxation section which ramble on about the scenario where one part owner rents out their room and whether stamp is due. No defintive conclusion ever seems to be reached, a very grey area. Talk to a professional, and be sure to give them ALL the facts.
Click to expand...

Well I live there at the weekend. The original house is a good bit closer to work so I live there midweek.
Is that suspicious?
What would the Revenue have to say about that?
 
In what sense did you buy the house, are you on the deeds and paying the mortgage? You can only have 1 PPR, which is it?

It could be construed that you're only keeping a room in the original house for the purposes of avoiding stamp.

Are you OR your brother claiming TRS on 2 properties at the same? (Are you on the deeds and paying part of the mortgage for the 2nd property with your girlfriends, and is the mortgage on that property receiving TRS?) If either of you are claiming TRS on your 2nd property then I believe Revenue would be of the opinion that the original property is an investment and all applicable taxs are due.

Talk to a professional.
 
Howitzer said:
In what sense did you buy the house, are you on the deeds and paying the mortgage? You can only have 1 PPR, which is it?

It could be construed that you're only keeping a room in the original house for the purposes of avoiding stamp.

Are you OR your brother claiming TRS on 2 properties at the same? (Are you on the deeds and paying part of the mortgage for the 2nd property with your girlfriends, and is the mortgage on that property receiving TRS?) If either of you are claiming TRS on your 2nd property then I believe Revenue would be of the opinion that the original property is an investment and all applicable taxs are due.

Talk to a professional.
Click to expand...

Thanks for the post Howitzer.
I'm on the deeds and paying the mortgage with my girlfriend.
My brother and myself (and the rent from the 3rd room) pay the mortgage in the house we both own.
We're claiming TRS in the house we both own.
Neither are claiming TRS on the houses we bought subsequently.
Would I get in touch a solicitor or someone else?
Thanks
 
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