Stamp Duty: couple split - one party purchasing frm other

If a couple split up (not married) and one party is purchasing the house of the other is there stamp duty applicaple on this sale. Both were first time buyers when the house was purchased.

title edited by ajapale

stamp duty

Hi Mike,

Yes, the purchaser must pay stamp duty on the % of the house purchased (ie half) at the full rate (no discount, as no longer FTB).

This will have no implications on the SD originally paid.

Stamp Duty

Why would stamp duty be applicable as all that is been done is taking one name of the title???

Re: Stamp Duty

Why would stamp duty be applicable as all that is been done is taking one name of the title???

Because that ( above) is not an entirely accurate description of what is happening!!

It is a complete change / transfer / conveyance of a one half interest in a property from one person to another and if it falls into the stamp duty threshold then stamp duty is payable.
A good way to deal with stamp duty is to involve the current lending institution and have them join in the deed transferring the ownership at full market value but subject to the mortgage.

I have quite a few of these at the moment - it is a real problem when the transferee ( i.e. the person who is getting the entire property) wants to remortgage because the Revenue treat that as a full value transfer with no allowance for the actual mortgage. Where the transaction involves a value of more than E127K then stamp duty will be paid.

mf

Stamp Duty

A good way to deal with stamp duty is to involve the current lending institution and have them join in the deed transferring the ownership at full market value but subject to the mortgage.


Can you expand on this point?

Re: Stamp Duty

Give me the facts and figures

1. Value of house - current market value.
2. Amount of mortgage - capital sum
3. Amount being paid to transferor ( person passing ownership)
4. How is that figure calculated.
5. Does the transferee ( the person taking full ownership) intend to stick with current mortgage or try and get another mortgage from someone else?

mf

Stamp

CV 305K
Mortgage 270K
25K Paid to person passing ownership
Amount paid into house
Moving mortgage to UB from PTSB

Re: Stamp

From calling the revenue stamp office they inform me that there is no stamp duty liability. Is it a case that they can charge it when the house purchase goes through??

Re: Stamp

Were you very clear with Revenue that ptsb were not joining in the deed but that it would be a transfer of joint ownership from both parties to one party and that the person taking full ownership was remortgaging with another lending institution?

Can they charge it when .......goes through?

Perhaps Revenue have changed their view since I last dealt with them and if they have that's worth knowing but I have a fear that when you go to do this that you will be paying stamp duty on a transfer with a value of E152.5K i.e. half the value of the property.

Check with Revenue and double check. If necessary ask for a reference to a directive or some such detailing Revenue standpoint.

mf