purchasing second house

If you mean as an investment - yes see [broken link removed], you also pay a higher rate of Stamp Duty but if the house is new then the SD is payable on the cost of the house less vat. When you go to sell the property you have to pay CGT on the gain.
 
If I sell a house which I have lived in for the last 4 years to buy a new 250sq m house (owner occupier) do I;
1) Pay stamp duty on the new house? If yes what will I pay? The new (unbuilt as of now) house is priced about €450k.
2) Pay CGT on my profits? The old house has gained about €130k (should get about €300k for it) but I will be putting this directly into the new house.

John
 
If the old house was your PPR, you don't pay any tax on profit. If new house is 125sq mts or under there will be no stamp duty liability for an owner occupier. If bigger, ther will be a reduced stamp duty. The cost of a new build is VAT inclusive, so VAT (13.5%) is deducted before assessing stamp duty.
 
Just to clarify, I bought the first house (one to be sold) as a single person and it is my PPR as will the new one, I am buying the second with my future wife (married next july) and she has never been mentioned on any mortgage/title, the new house is above the 125sq m cut off point. Do we get any SD relief from the fact that the second name on the title/mortgage will be a FTB? What SD rate would apply? House cost €45k and size 250 sq m.
Thanks for the help.

John
 
Unfortunately both parties have to be first time buyers. Otherwise stamp duty is chargeable. 450K less VAT @13.5% = 396.5K (approx). This is the figure you will pay stamp duty on. I don't have the rates to hand at present but I think it may be 4% on PPR. Do a search on AAM for the rates. They're bound to be everywhere!! The important thing about the VAT deduction is that it may bring you down a % on the stamp duty scale. Good luck.
 
For houses over 125 sq m stamp duty is calculated at the rate appropriate after the following formula:

Site value or quarter of house value Ex vat incl site ex vat

Don't know the site value but assume 120K

Value of house incl Vat 450K
Excl Vat 396.5K
Quarter of 396.5 = 99K
Site value is used in this instance and as under the limit no stamp duty is payable.

You need to check the value of the site (if you can)

I'm also assuming the house of 250sq m for 450K is being built outside of the greater dublin area.
Where are you getting the land? Is it your's or are you getting a gift from your parents?
 
a25c said:
Are there any tax implications with buying a second house?
Click to expand...
Please clarify if this is an owner occupier PPR or a property investment question. If it's the latter then it's in the wrong forum.
 
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