Will this come back- or are there more problems just than the stamp duty??
From Irish independent 29 January 2010
Sorry not allowed link but article was swap mine for yours
One option is a permanent house-swap, with websites such as u-exchange.com enabling people to make contact with potential swap partners.
It all sounds sweet, but there is a rub. Revenue rules say stamp duty is payable regardless of whether or not there is a cash transaction -- and on both houses.
Carlow-based estate agent Harry Sothern is an advocate of house-swapping and calls on the Government to implement changes to the rules on stamp duty to allow for greater mobility.
He says: "Back in the 1980s and early 1990s, many agents organised house-swapping between interested parties.
"At that time, the Revenue only charged stamp duty on the price difference between the houses swapped and it was payable only by the party trading up.
"It was an excellent arrangement. For instance, it allowed young families, who wanted to move to a larger house in town or in the country, to trade with an older couple looking for a more manageable property.
"At that time, bridging finance was unobtainable and the selling market was very sluggish, so house-swapping was an excellent tool to allow people to move.
"Aside from stamp-duty savings, people often agreed to use the same solicitor and of course only one estate agent was involved, thus making this a very attractive and cost-effective means of moving house.
"However, as the practice became more popular, the Government/Revenue be-came unhappy with the loss of income to the Exchequer and declared that no more swaps would be allowed.
"Parties would have to sell their respective houses to each other, thereby attracting stamp duty in each case."
So for the moment, we are unfortunately stuck with stamp duty as it is, but that doesn't mean we can't embrace house-swapping.
From Irish independent 29 January 2010
Sorry not allowed link but article was swap mine for yours
One option is a permanent house-swap, with websites such as u-exchange.com enabling people to make contact with potential swap partners.
It all sounds sweet, but there is a rub. Revenue rules say stamp duty is payable regardless of whether or not there is a cash transaction -- and on both houses.
Carlow-based estate agent Harry Sothern is an advocate of house-swapping and calls on the Government to implement changes to the rules on stamp duty to allow for greater mobility.
He says: "Back in the 1980s and early 1990s, many agents organised house-swapping between interested parties.
"At that time, the Revenue only charged stamp duty on the price difference between the houses swapped and it was payable only by the party trading up.
"It was an excellent arrangement. For instance, it allowed young families, who wanted to move to a larger house in town or in the country, to trade with an older couple looking for a more manageable property.
"At that time, bridging finance was unobtainable and the selling market was very sluggish, so house-swapping was an excellent tool to allow people to move.
"Aside from stamp-duty savings, people often agreed to use the same solicitor and of course only one estate agent was involved, thus making this a very attractive and cost-effective means of moving house.
"However, as the practice became more popular, the Government/Revenue be-came unhappy with the loss of income to the Exchequer and declared that no more swaps would be allowed.
"Parties would have to sell their respective houses to each other, thereby attracting stamp duty in each case."
So for the moment, we are unfortunately stuck with stamp duty as it is, but that doesn't mean we can't embrace house-swapping.