Two Questions:-
1. Am I correct in saying I will not have to pay any stamp duty on this new purchase as I will be an owner occupier and the value is only E310K which puts it under the Chargeable Consideration threshold?
jamesgm said:2. If I keep the first house and rent it out will I pay a stamp duty clawback & how much will it be?
Hi CCOVICH/liteweight,
I actually agree with ramble but I have to question your advice on both questions:-
1)
I am taking the following from the Revenue website under the heading Stamp duty on new houses and apartments
If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.
The exemption threshold is E127K so at 25% of E310K(less VAT) I calculate my stamp duty as owner occupier will be assesed on ~E77.5K therefore I am exempt.
jamesgm said:2)
Stamp duty is calculate on the figure less VAT so E195K less VAT which I calculate at ~E168K therefore I think the stamp duty will be charged at 3%
To correct Big M, both rate and amount of stamp duty are based on the net of vat price, vat is charged on the whole consideration of a new build.
Can someone out there confirm or otherwise my work here..many thanks.
"Stamp duty is assessed on the VAT exclusive consideration, Sections 48 and 56 of the Stamp Duties Consolidation Act 1999 provide that the chargeable consideration for stamp duty purposes is to exclude any VAT chargeable under Section 2 of the VAT Act 1972 on the sale or lease."
From revenue link..
297k less VAT at 13.5% = 40095....297,000-40,095= 256,905.
Seeing as 297 and 256,905 are both between the band 254k-317.5k rate =5% no confusion here.
Therfore liability = 256,905x5%= 12,845
It is not 297 x5% = 14850 is it???
Or is the vAT 21% by any chance??
many thanks
MB
This sum can also be offset against rental income Im pretty sure too. So at 1300/m no tax in year 1 when others expenses are included.
cheers.
MB
If its new zero but if 2nd hand Id imagine seeing as the VAT is already paid your calc is based on 5% of the whole amount. so 13250 seems right.
Difference for me was mine was new and therefore I can deduct the VAT element from the calc...interesting to get confirmation that the 2nd hand is calc'd on the full sale price...Im sure it is as you are NOT paying any VAT. The vendor had paid it already.
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