Query re Buying a Site + Stamp Duty

Hi - we are looking at a site with a house on it. The house is around 900sq ft so is very small. We are thinking of buying the site, applying for planning permission and building a new house on the property (around 2000sqft). Would we have to pay stamp duty on the purchase of the house and land and would we also have to pay stamp duty on the new build house? Any info much appreciated.

Hi,

Stamp duty works on a sliding scale, you acn see the figures at:

luckily for you the purchase would be subject to the rates that apply to houses, not land which maxes at 9% when the price exceeds 150k. once it is yours, you can do what you ( and the planners ) like. there might be development levies payable but that would depend on the nature of the development and which county it is in.

xt40 - if you buy land for less than 150k do you not pay stamp duty on it?

Might be an idea to enquire if the seller would provide 2 contracts on the sale one for the land under the threshold amount mentioned above and another for the house, thus limiting stamp duty payable. New house build not subject to stamp duty, remember stamp duty only applies when a property is bought or sold.

"Might be an idea to enquire if the seller would provide 2 contracts on the sale one for the land under the threshold amount mentioned above and another for the house, thus limiting stamp duty payable. "

This is simply not a runner. You cannot have two related contracts for the same property where the intention is to avoid?evade? stamp duty. It is illegal.

A site is deemed non residential property - stamp duty is payable on the disposal of a site on a sliding scale - 1% -8% on sites from E10K to 150K. Over 150K, its at 9%.

In OP's scenario, depending on the size of the plot - Revenue could deem it to be the sale of a house with surrounding curtilage ( gardens) PLUS non residential lands in addition. Stamp Duty would be payable on the house at Residential Stamp Duty rates and any additional lands ( in excess of gardens etc.,etc) would attract non residential stamp duty rates.

mf

Many thanks everyone for your replies. I got very excited when I was reading your post Macer as it sounds like a great idea but the excitement was short lived when I read your post MF1 - but it is good to have all the information (the pros and the cons ). Thanks a million.

Re: Cost of Planning Permission

Good afternoon,
I am planning a new build in Kildare. The approximate size of the house will be about 3000 square feet.

Can anyone give me any idea as to the cost of planning permission?

Thank you,
Lee