Unless he is going to live there or have somebody live there on his behalf rent free (under the relevant stipulation of the stamp duty legislation) then he is not a FTB but an investor. His solicitor should apprise him of this fact and his investor SD liability. He obviously loses his FTB status by doing this and cannot claim owner occupier mortgage interest relief etc. If he is planning to rent it out then he is obliged to declare and pay income tax on rental income. If/when he does this then the fact that he is not an owner occupier will become obvious to Revenue. If he does not do this and his tenants claim rent relief then his landlord status will become obvious to Revenue. If he plans to fraudulently rent it out under the rent a room scheme then he is storing up a potentially expensive hostage to fortune.Eurofan said:He's convinced that since he's a 'First Time Buyer' he's perfectly on the up and up not to have to pay stamp duty (prop value €185k). I'm trying, in vain, to warn him that he is in fact liable for stamp duty since he's not an owner occupier.
Hmmmm. If this is actually true (you are obviously not privy to your "friend's" private consultations with his solicitor so must take his word for it) then it sounds like an incompetent or dodgy solicitor. On the other hand your "friend" could be simply telling porkies to convince you and/or himself about the viability of his dodgy strategy.Interestingly his solicitor advised him 'not to worry about it' since 'everyone does it'....
Thanks for confirmation of what i thought, i'd actually completely forgotton about his mortgage relief too. Getting bloody messy.ClubMan said:If he plans to fraudulently rent it out under the rent a room scheme then he is storing up a potentially expensive hostage to fortune.
I gather he brought this up very late in the buying process with the solicitor and was given the quoted 'wink,nudge' advice. He was quite happy to take that as said but while he seems to appreciate that what he's doing puts him on very dodgy ground he just drops the "everyones doing it" quote.Clubman said:Hmmmm. If this is actually true (you are obviously not privy to your "friend's" private consultations with his solicitor so must take his word for it) then it sounds like an incompetent or dodgy solicitor. On the other hand your "friend" could be simply telling porkies to convince you and/or himself about the viability of his dodgy strategy.
On what precisely? The Revenue documentation on all of the issues that I raised above is not difficult to find by browsing or searching their site.EuroFan said:would anyone have a link to the revenue guidelines i could give him on this before he actually signs?
ClubMan said:Does your friend have any official hand, act or part in this transaction other than being happy to sit idly by while her boyfriend defrauds the state and compliant taxpayers? Why not point her and her boyfriend to this thread?
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