PPR Stamp Duty Clawback

N

newinvestor

Guest
Hey folks, long time reader, first time poster, as they say.

I have a question about the stamp duty incurred if you buy a second property and rent out your previous PPR. I'm aware that if this is done within 5 years of purchase you must pay the stamp duty, but does anyone know what the strict definition of purchase is in this case? i.e from date of completion or date of deposit.

My situation is as follows:

I'm recently married and in our family home 4 years. We are looking to invest, and have been toying with the idea of buying and second property with a view to renting it out. It's just dawned on me that if we waited a little while, we could possibly but a new home for ourselves (which is something that was on the 5 year plan anyway) and rent out our own home without penalty. The family home (large 3 Bed Semi) has quite a small mortgage (lesss than 1/3 of the value) and would have a very healthy rental value (~1200 PM which would cover the mortgage twice). Would it be of any banefit to buy and let our PPR out (after the 5 year lapse) or would we be in the same situation if we bought an investment property and stayed put. Excuse my ignorance, i'm just getting my head around all of this stuff.

regards.

J
 
I think I read before that the 5 year period starts from the date of the purchase deeds.

You may find more here [broken link removed]

As regards whether to invest in a second property, you should read the key posts.
 
I have a query. I purchased a second house as an investment property in 2002 and I now wish to sell the house. There was no stamp duty on the house as the original cost price was below €127000. I assume the only thing that I will have to pay is CGT @20% on the sale price - purchase price and deducting any costs incurred in purchasing and selling the house. I read somewhere that if the house is less than 5 years that I may be subject to income tax rather than CGT. Is this correct?
 
newinvestor said:
Hey folks, long time reader, first time poster, as they say.

I have a question about the stamp duty incurred if you buy a second property and rent out your previous PPR. I'm aware that if this is done within 5 years of purchase you must pay the stamp duty, but does anyone know what the strict definition of purchase is in this case? i.e from date of completion or date of deposit.

My situation is as follows:

I'm recently married and in our family home 4 years. We are looking to invest, and have been toying with the idea of buying and second property with a view to renting it out. It's just dawned on me that if we waited a little while, we could possibly but a new home for ourselves (which is something that was on the 5 year plan anyway) and rent out our own home without penalty. The family home (large 3 Bed Semi) has quite a small mortgage (lesss than 1/3 of the value) and would have a very healthy rental value (~1200 PM which would cover the mortgage twice). Would it be of any banefit to buy and let our PPR out (after the 5 year lapse) or would we be in the same situation if we bought an investment property and stayed put. Excuse my ignorance, i'm just getting my head around all of this stuff.

regards.

J
Click to expand...
Have a read of the Sell home or keep as an investment? key post before you decide.
 
soulman said:
I read somewhere that if the house is less than 5 years that I may be subject to income tax rather than CGT. Is this correct?
Click to expand...

No. ...................
 
You must log in or register to reply here.
Back
Top