Stamp Duty Calculation

Hi All,

In the following scenario how much stamp duty would apply?

Two people buy a house/apartment together. Both named on mortgage and title deeds. After say 3 years one party wish to exist and sell their share to the first party. Assuming that the other party can afford the new resulting repayments and that the banks agree how much stamp would be charged for the removal of party B from the title deeds? Is their a formula for caluculating it? Is it a percentage of the valuation? Apart from associated legal costs what other expenses might be incurred?


Thanks in advance,

Regards

stamp dutyis based on 50% of gross value, assuming the parties own the property in equal shares

IF you were both FTB you will not have to pay any stamp duty, if you have not bought any property since.

Hi MOB,

You say stamp duty is based on the gross value, at what rate does it apply. I am trying to estimate the likely amount due in the event of say party A buying out party B's share. Is their a formula or percentage scale that the revenue apply? If so what is the formula or details for calculating an amount due.
You mention that it applies to 50% of the gross value. However if the share is different say 70/30 and the '30' element is being bought out. In this case what would the stamp duty be?

Hi Mike 456,

Both parties are FTB however I dont see the relevance of whether or not subsequent properties have been bought. Could you clarify please.

Thanks again,

Regards

What is the overall value of the property? What is the percentage value ( i.e. how much is 30%?)that is being bought out? What is the outstanding amount of the mortgage? Do both parties pay the mortgage equally or in proportion to their ownership?

Take a simple calculation:

Property worth 400K. Both own equally. Mortgage outstanding is 200K.
400K - 200K is 200K. 50% of 200K is 100K. No stamp duty payable.

You need to look at Revenue website ( Revenue.ie) and see the rates of duty for values.

If a f.t.b. is buying out a portion of the property that they bought as a ftb ( and have not pruchased again- ftb rates still apply.



mf

Hi mf1,

The property value is €330k approx.
Mortgage outstanding is €250K.

Currently both parties named on title and mortgage deeds. Split of ownership is 70% (party A) and 30% (party B). B wants to exit and A is in a position to buy B's share out.

The agreed amount owing to B, and payable to B by A is 30% of €330K-€250K, ie 30% of €80K=€24K.

Based on this would stamp duty apply for this transaction and/or the removal of B's name from both the title deeds and mortgage.

I have looked at the revenue website but the rates quoted are the standard rates applicable when purchasing a property in relation to both a FTB and non FTB. There does not appear to be a mention of the rates applying to the change in ownership of a property. Which rate applies in this example.

Thanks in advance,

Regards,