Stamp Duty Clawback...5yrs begins when?

J

Jane1

Registered User
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Hi,
Does anyone know when the 5yrs for Stamp Duty Clawback begins? Is it from the down payment of the first deposit or from the final signing and receiving the keys? For me its 10 months difference.
If its the latter and say I buy a new PPR tomorrow and don't rent out my previous PPR until after the 5 yrs are up would that be ok?
Also by doing that would my previous PPR become classed as an investment property still and be subject to investors stamp duty?

Any comments would be great!
J.
 
Jane1 said:
Does anyone know when the 5yrs for Stamp Duty Clawback begins? Is it from the down payment of the first deposit or from the final signing and receiving the keys? For me its 10 months difference.
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From when you take beneficial ownership of the property by closing the purchase - not when you pay the deposit or sign the initial contracts.
If its the latter and say I buy a new PPR tomorrow and don't rent out my previous PPR until after the 5 yrs are up would that be ok?
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Yes - if you wait for the 10 months until the 5 years are up and then rent it out then you avoid the clawback.
Also by doing that would my previous PPR become classed as an investment property still and be subject to investors stamp duty?
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Your former PPR would be classed an investment once you rent it out or once 12 months after vacating it as your PPR elapse even if you don't rent it. There is no SD implication unless it is rented out within the 5 year period. Where you retain a former PPR for more than 12 months the some portion of any eventual resale gain will be assessable for CGT.

If in doubt get professional advice.
 
Thanks for that Clubman.

So basically if I buy a new house making it my PPR and it is below a certain sq. footage I pay no stamp duty.

My old PPR I will put off renting for 10 months and it will not be subject to stamp duty clawback.

However as I will be holding onto my previous PPR in case of a return to Dublin this property will become an investment property after 12 months and will be subject to 20% CGT if I should sell it down the line.

Just to be sure!
Tks J.
 
Jane1 said:
So basically if I buy a new house making it my PPR and it is below a certain sq. footage I pay no stamp duty.
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A new house under 125sqm is exempt from SD for all owner occupiers. Over 125sqm the rules are a bit more complicated and are overviewed elsewhere and on the Revenue and CitizensInformation websites.
My old PPR I will put off renting for 10 months and it will not be subject to stamp duty clawback.
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Yes.
However as I will be holding onto my previous PPR in case of a return to Dublin this property will become an investment property after 12 months and will be subject to 20% CGT if I should sell it down the line.
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A portion of any eventual resale gain will be assessable for CGT. For example if you live in it as your PPR for x years and then rent it out for y years before selling then:

(y-1)/(x+y) is the fraction of any resale gain that will be assessable for CGT.
Just to be sure!
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Get independent professional advice if necessary.
 
Thanks again Clubman.
Going to ring revenue tomorrow and get them to confirm details and then I'll have a good idea when I meet my solicitor.

J.
 
Sorry I'm using slang there!
I'll have a better understanding of it in my own head when discussing it with the solicitor!
 
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