FTB Selling House in first 5 years!

C

Caili

Registered User
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Hi All,

Does anyone know would you have a stamp duty claw back if we sold our house within the first 5 years of purchasing it, we didnt have to pay stamp duty because we were 1st time buyers?

Thanks :D
 
You won't have a claw back of stamp duty. This was an exemption at the time of purchase and isn't conditional to any time scale.

Just means that you are no longer eligble for this exemption on all future property purchases.
 
Caili said:
Great! Thanks a million :D Australia here we come :D Goodbye crappy weather :)
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Wait. There was a clause in that exemption that stated there would be a claw back if the party involved escaped to australia. :D
 
Just to clarify ... SD clawback only applies if a property originally bought as an owner occupied PPR is rented out within 5 years of purchase. The sale of a property that was one's PPR at all times is exempt from SD clawback and CGT.
 
Thanks Clubman :) And would i be correct in saying if you rented it out rather than selling up you would have to pay the rate of stamp duty an investor would have had to pay at the time the house was bought? Also, would the stamp duty have to be paid in a lump?
 
Caili said:
Thanks Clubman :) And would i be correct in saying if you rented it out rather than selling up you would have to pay the rate of stamp duty an investor would have had to pay at the time the house was bought? Also, would the stamp duty have to be paid in a lump?
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If you rent it out within 5 years of purchase then yes you would be liable for the SD clawback - i.e. whatever an investor would have paid on the purchase less whatever you actually paid (possibly nothing). And the SD would be payable in full at the time of first renting (or maybe within some short period thereafter). Renting the property for longer than 12 months after vacating it as a PPR would also give rise to a partial CGT liability on any resale gain. There are other implications (e.g. inability to claim owner occupier mortgage interest tax relief - although ability to offset such interest against rental income, obligation to register with PRTB, normal tax treatment of rental income etc.)
 
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