Am I exempt from stamp duty?

D

DavidHague

Guest
if i own a house for 5 years and it is rented, and i buy a new house for €295,000 with a 96 sq m. Which i am going to live in and still rent the first house, will i be charge stamp duty at 5% or ami exempt as the sq m is below 125 ???

Thanks for all replys
 
DavidHague said:
if i own a house for 5 years and it is rented,
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Was this house ever your PPR (Principal Private Residence) or was it initially bought as an investment and investor rates of stamp duty paid on the purchase? If it was bought as a PPR but you rented it out within five years of purchase then a clawback of stamp duty on this house (unrelated to the purchase of the second house that you mention) applies. See .

and i buy a new house for €295,000 with a 96 sq m. Which i am going to live in and still rent the first house, will i be charge stamp duty at 5% or ami exempt as the sq m is below 125 ???
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You are exempt from SD on the new house purchase as non first time buyer owner occupier of a new property under 125 sqm.
 
Thanks ClubMan...

The mortgage on the house was set up as a PPR but i never lived in the house and it has been rented since i purchased it 5 years ago. I have used the equity in the house to help purchase the second house. I have re-mortgage and put the first mortgage as a investment mortgage and the second mortgage for the new house as a PPR mortgage as i will live in the house. On paper though the dates on all documents show that the first mortgage i have had for just over 5 years.

Any more advice. Thanks Dave




 
DavidHague said:
The mortgage on the house was set up as a PPR but i never lived in the house and it has been rented since i purchased it 5 years ago.
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If you did not pay investor stamp duty at the time of the purchase then (by virtue of the fact that the property was never actually your PPR and was rented out within five years of purchase seemingly as your PPR even though this was not the case) you are still liable for it and it may be overdue in which case interest and penalties may apply.
 
thanks ClubMan.. if the first house was bought as a investment property and the mortgage was set up as an investment mortage, and i buy the second house as a owner occupier.. would i still pay stamp duty ??

I take it that i wont be paying stamp duty on the new house, but i might have to on the old house. Is the stamp duty based on todays value of the house.. or purchase price 5 years ago

Thanks..



 
DavidHague said:
thanks ClubMan.. if the first house was bought as a investment property and the mortgage was set up as an investment mortage, and i buy the second house as a owner occupier.. would i still pay stamp duty ??
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The mortgage has nothing to do with it. If you bought the first house as an owner occupier and rented it out within five years of purchase (which seems to be the case here - in fact without you ever living in it as your PPR as far as I can see) then you should have paid investor stamp duty, really at the time of the purchase but at least due to the stamp duty clawback. There is no financial engineering way to circumvent this as far as I know.

I take it that i wont be paying stamp duty on the new house, but i might have to on the old house. Is the stamp duty based on todays value of the house.. or purchase price 5 years ago
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Yes - stamp duty on the first house as explained above. You are liable for the same amount of stamp duty that an investor should have paid at the time (i.e. the rate at the time of purchase on the purchase price at the time.

No stamp duty on the new house if your are buying a new house as an owner occupier and will occupy it as your PPR. If you rent it out within five years of purchase then the SD clawback will apply to this house too.
 
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