Stamp duty etc. questions...

[Unregistered]

Hi

I'm in the process of buying an apartment with my fiancée,
we are also in the future (2/3 Years) are planning to build a house.

My question is regarding Stamp duty, the apartment we are buying
has no stamp duty were 1st time buyers.
The site is being given to us by my parents.

I'm wondering what is the best way to minimise our liabilities in the future
by the time the house is ready we will be married.

Should we put the apartment in my fiancée's name only?
What is the best way of doing this?

Thanks

 

[B. Bub]

Can you clarify your query?

If the apt. is new and you plan to live in it you will not pay stamp duty.

If your parents give you a site you will have to pay stamp duty. If they give it to you alone you will pay half the normal stamp duty rates. Then when you get married you can transfer half the site into his name without stamp duty.

Bub.

 

[Unregistered]

The apartment is new, and we plan to live in it for the next 3 years.

During this time we also plan to build on the site.

Will they look to claw back the stamp duty if we decide to rent out the
apartment in 3 years time?

Transferring the site into my name, does it make a difference if you
have owned somewhere before? If I'm not on the deeds for the
apartment would this mean I can avoid stamp duty on the site?

 

[ClubMan]

The apartment is new, and we plan to live in it for the next 3 years

I presume that part of your original query relates to the possibility of one of you "using up" your first time buyer status this time and the other "retaining" theirs for a later purchase? It may be possible to do this as a nor married couple by having one partner's name on the deeds even if both are paying the mortgage but I'm not sure if this is totally acceptable to Revenue and, in any case, it represents a significant risk for the partner who is effectively made a non beneficial owner of the property - for example, if things go sour and the couple split up then the non beneficial owner may have some hassle getting their fair share. A suitable joint purchase legal agreement might help and would be prudent in the case of joint buyers who are not married.

Will they look to claw back the stamp duty if we decide to rent out the apartment in 3 years time?

Yes - if you purchase as an owner occupier and then rent the property out withing five years of purchase (other than under the owner occupier rent a room scheme) then the clawback applies. See for a summary of the rules.

Transferring the site into my name, does it make a difference if you
have owned somewhere before? If I'm not on the deeds for the
apartment would this mean I can avoid stamp duty on the site?

See above. You should also be guided by youe solicitor and/or tax advisor on stuff like this so that you don't undertake unacceptable risk or at least are apprised of the risks involved.