Stamp duty clawback if selling new house in less than 5 years

G

garv_man

Guest
I'm in the process of buying a new house of < 125sqm and is exempt from stamp duty. However there is a strong possibility I will sell the house in less than 5 years. Can anyone explain the detail of the stamp duty 'clawback' that I would be liable for, if I sell the new house in less that 5 years?
 
The clawback only applies if a house originally bought as an owner occupied principal private residence (PPR) is rented out (other than under the rent a room scheme) within five years of purchase. This is to prevent people from avoiding investor stamp duty by ostensibly buying as owner occupiers but then renting the property out. The clawback has no relevance to people who simply sell on their PPR within five years of purchase. Unless you are planning to rent out the property the clawback is irrelevant to your situation. Does that answer your question?
 
Yes - an owner occupier who sells their PPR (bought new or second hand) within five years of purchase is not subject to the SD clawback. The clawback only kicks in if an owner occupier rents out their house within five years of purchase.
 
Any handy links to stamp duty limits etc out there.

I presume clawbacks are the amount saved at the time of purchase. For example I bought a house for 300K 2 years ago, have now decide to rent it out, so i pay the stamp duty which would have been payable 2 yrs ago, and not that due under current legislation, which if I were a ftb, would be zero.
 
Glenbhoy said:
Any handy links to stamp duty limits etc out there.
Click to expand...
Check out and [broken link removed].

Yes - but note that you pay the stamp duty that would have been payable 2 years ago by an investor less whatever you actually paid (possibly nothing) and note also that the clawback is an all or nothing issue and not calculated pro rata on a reducing basis over the first five years of ownership.
 
Bigfoot said:
Does the same apply to new and second hand houses?
Click to expand...

I do not think so, as generally SD is payable on second hand houses unless value is less than €317,5k,
 
Hi, We bought our house 18 months ago as our PPR.
we are going travelling for six months and are renting the house out for the six months. We will then be moving back into the house.

Are we going to be hit with stamp duty clawback??

Advice would be apprreciated.
 
Yes I'm an owner-occupier and this will be my PPR, so this answers my question.
 
RubberDuckey - The answer is yes. You will have to pay the difference between whatever you paid and the invetor rate if you rent it out. You should take this into account when deciding whether its worth your while renting it out at all.
 
rubber duckey - see a previous discussion we had on this in the property investor forum - there is a body of opinion there that supports the view that you would not be required to pay the stamp duty.
 
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