Stamp Duty Clawback

Hi all.

I know that if you rent out a PPR within the first five years of ownership that the home owner is liable for Stamp Duty clawback. I understood that the liability this was simply difference between what should have been paid by an investor at the time of sale minus any stamp duty already paid (plus interest and penalties if appropriate).

However, I was told that this stamp duty clawback could be done on a time apportioned basis. Therefore, if the house was used as a PPR for 3 years and let out for 2 years (within the first 5 years), then the stamp duty clawback would be two fifths of the above amount, as the house was only let for two fifths of the first 5 years.

Is this true? If it is, it is not very well explained on the revenue web site.

Thanks.

Whoever told you that was wrong. The SD clawback is an all or nothing issue and is not applied pro-rata over the five years. They may have been confusing this with the CGT treatment of the sale of a property which was both a PPR and rental property at different times.