Any relief for previously paid Stamp duty or loss on sale of PPR

[The J man]

Hi guys,

I would be grateful for any input into the following scenario. I bought a house with gf (now ex gf) a number of years ago at €440k. Paid SD of approx €34k. We subsequently split up and sold recently for €360k which just about covered the o/s mortgage.

My question is if I buy in the future bearing in mind I am not entitled to any First Time Buyer exemptions and also if i buy with First Time Buyer they also lose there exemptions do I get any relief for the loss suffered from the sale of my PPR or the stamp duty paid on that house.

I'm assuming its a case of tough sh*t which means if I want to buy a house say circa €300k I would have to pony up €15k in SD and a deposit of 10% €30k. So basically would need €45k (after tax). Seems a very penal system if no relief is available for losses. They easily take away FTB for both parties even if one is FTB so where is the equitable fairness.

Would very much appreciate people's advice on the above and whether or not my understanding is correct?

Thanks,
The J Man

 

[speirbhean]

I'm assuming its a case of tough sh*t which means if I want to buy a house say circa €300k I would have to pony up €15k in SD and a deposit of 10% €30k. So basically would need €45k (after tax).

You assume right. You're not a first time buyer any more. You could buy a stamp duty exempt house, ie new build but that has nothing to do with your status.
Oh and that 10% deposit... depends on your bank. Not every bank is lending 90% these days. It's a changed world out there...

 

[Berni]

Seems a very penal system if no relief is available for losses.

If they don't tax the corresponding gains, it would be rediculous to allow relief on the losses.

 

[The J man]

Thanks Speirbhean , pretty much confirmed what I thought. I was just thinking about it recently and to hear of all these developers been bailed out and been able to offset losses etc. while the ordinary Joe Soap gets mugged in broad daylight typifies everything that is wrong with this country!!

I would imagine that there won't be many "new builds" in the future. On reflection it really does just make me want to leave this country and leave its government obsessed property tax idiot politicans to run the country into the ground!!

Au revoir Ireland I'm outta here!! This government has got enough tax from me in the form of PAYE, PRSI and SD that they literally p*ssed down the drain and I for one will not be writing them another blank cheque to wipe their ass with! :mad:

As an aside to all those people with questions 2 on the mortgage 1 on the deeds.. one day the Revenue will come knocking, it was a stupid dangerous practice which greedy money grabbing solcitors engaged along with banks that will be shown up for what it was ... TAX EVASION... and that's coming from somebody that will have to pay the SD again!!

Loving AAM guys ... keep up the good work.

The J Man

 

[The J man]

I wouldn't say its ridiculous... maybe the system is flawed in that profits should be taxed. At least then its fair and equitable in both scenarios and giving the recent economic turmoil I'm sure there are alot of people in this position that may have to sell for reasons like myself or just can't afford current mortgage payments.

Also the government just constantly has its cake and eats it. why should I have to pay €30+k SD and then three years later or whatever it is pay the same for what, a little crappy stamp on a piece of paper!! Plus if I buy with another person that is FTB they lose that status too (Basically as one of my good friends once said, dude if a FTB girl agrees to buy a house with you then you truly know she loves you cause it will cost her approx €10k in SD and not been able to avail of First time buyer Interest rates) Now thats some amount of money for a person to lose based on our penal system of SD.

I'm not focusing on giving out about one area of the current situation. I just think the overall system is not equitable and fairly reflected on all individuals. I accept my predictament but it is still encouraging to hear other peoples thoughts on the system and whether or not the system works or needs radical surgery.

 

[speirbhean]

Thanks Speirbhean , pretty much confirmed what I thought. I was just thinking about it recently and to hear of all these developers been bailed out and been able to offset losses etc. while the ordinary Joe Soap gets mugged in broad daylight typifies everything that is wrong with this country!!

I would imagine that there won't be many "new builds" in the future. On reflection it really does just make me want to leave this country and leave its government obsessed property tax idiot politicans to run the country into the ground!!

Au revoir Ireland I'm outta here!! This government has got enough tax from me in the form of PAYE, PRSI and SD that they literally p*ssed down the drain and I for one will not be writing them another blank cheque to wipe their ass with! :mad:

As an aside to all those people with questions 2 on the mortgage 1 on the deeds.. one day the Revenue will come knocking, it was a stupid dangerous practice which greedy money grabbing solcitors engaged along with banks that will be shown up for what it was ... TAX EVASION... and that's coming from somebody that will have to pay the SD again!!

Loving AAM guys ... keep up the good work.

The J Man

In fairness I wouldn't describe you as some one who was mugged. You bought a house with someone presumably to live in for the medium term. Sorry it didn't work out but no one forced you to buy it and no one gave a written guarentee that its price was going to go up either. There were and are huge problems with the banking sector and their attitude towards home loans but at the end of the day adults bought houses with their eyes open and have to accept some of the consequences of a changing market. If you'd done this ten years ago and made a huge profit on the house I assume you wouldn't be voluntarily handing over a percentage to the government... would you?

 

[speirbhean]

(Basically as one of my good friends once said, dude if a FTB girl agrees to buy a house with you then you truly know she loves you cause it will cost her approx €10k in SD and not been able to avail of First time buyer Interest rates) .

I'm kinda hoping you are Ross O'Carroll Kelly posting under an assumed name here. Or did Ireland really get so up itself over the last five years that couples discussed their FTB status before moving in together? God help my innocence but in my day (and I'm speaking from the grand old age of 35 here) couples fell in love and bought houses together with a view to it being forever??? I'm clearly just a fool for love

 

[The J man]

Alas I have been found out.. Was just introducing a bit of light hearted humour is all!! In fairness the friend was drunk when he said it!! I'm clearly a fool for love too giving I will have to pay the Government another wad of cash to get back on property ladder!! I'm also clearly a fool for an equal and fair society which I believe the government will never deliver.. everyday its a never ending barrage of idiotic practices such as cut backs in Childrens hospital etc (Sorry I know I am going off thread!!)

Anyhow thanks for the input

And remember collars up!!

Yours faithfully,

R.O'c.K

 

[orwell]

Just to let you know if in the future you buy again with a gf who is first time buyer, she doesn't lose her ftb interst relief...Myself and husband bought house in 2007,heis not first time buyer, but I am..I'm in my third year and getting it..187.50 per month...

 

[speirbhean]

Alas I have been found out.. Was just introducing a bit of light hearted humour is all!! In fairness the friend was drunk when he said it!! I'm clearly a fool for love too giving I will have to pay the Government another wad of cash to get back on property ladder!! I'm also clearly a fool for an equal and fair society which I believe the government will never deliver.. everyday its a never ending barrage of idiotic practices such as cut backs in Childrens hospital etc (Sorry I know I am going off thread!!)

Anyhow thanks for the input

And remember collars up!!

Yours faithfully,

R.O'c.K

That's all roysh man, welcome aboard. And remember - there's loads of value out in Tallafornia if you just know where to look...

 

[mathepac]

... make me want to leave this country and leave its government obsessed property tax idiot politicans to run the country into the ground!!

Au revoir Ireland I'm outta here!! ...

Ross man, ya shudda payin' more attention to de French burds after dem Paris matches, 'Au revoir' means 'to seeing again' in other words ' to a temporary separation'.

I'd be happy if ya left for good...