Stamp Duty Exempt?

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kilteragh

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OK. I've read the info on the revenue site and I am now worried. The house we are buying is costing €365000. We are not first time buyers but we are going to be owner / occupiers. According to the brochure on the auctioneer's website the property is 1625 sg ft which is just over 150 sq mts. Accordingly it looks like we should pay 6% on this amount. However the website also says that the house is Stamp Duty exempt. How can this be?

We queried the exempt status with the auctioneer some time ago and he confirmed that there is no stamp duty due on the property. How can this be? He knows that we are not first time buyers as we discussed the sale of our own house with him and he came out to see it.
 
Exactly the same as revenue.ie.

I'll be on to solicitor first thing in the morning before calling auctioneer.
 
kilteragh said:
OK. I've read the info on the revenue site and I am now worried. The house we are buying is costing €365000. We are not first time buyers but we are going to be owner / occupiers. According to the brochure on the auctioneer's website the property is 1625 sg ft which is just over 150 sq mts. Accordingly it looks like we should pay 6% on this amount. However the website also says that the house is Stamp Duty exempt. How can this be?
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You don't pay 6% on the full €365K - you pay it on :
If the area of the house or flat is greater than 125 sq. metres (1,346 sq. feet), some stamp duty is payable if the Chargeable Consideration is above the relevant exemption threshold. (The stamp duty is assessed on either the cost of the site or 25% of the cost of the site plus the building costs (less VAT), whichever is the greater figure. This figure is called the Chargeable Consideration.
Click to expand...
If the chargeable consideration is under the relevant exemption limits then you don't pay any stamp duty. This could explain the website's claim. However don't take the word of a seller's agent as gospel on this and get your own independent, professional advice and confirmation of the relevant taxes.
 
That sounds much better, thanks, but still more than we were told it would cost (€0). I'll look into this tomorrow and post my findings.

At best this is a case of false advertising and laziness on behalf on the auctioneer allied to a lack of diligence on my behalf.
 
Is the house a new build?

If no then you are liable for stamp duty.

If yes then Clubmans post applies. Take the house value @ €365k, take 25% which gives €91.25k as this is below the €127k cut off you do not have a stamp duty liability using this method. The other is the site value, if that is also below €127k then there is no stamp duty. Get you solicitor to confirm this.

I was in the same boat a few months back and thanks to the advice from Vanilla on this site I ensured my contracts were properly constructed.

Christy
 
Sorry - I automatically assumed that it was a new house but that is not obvious from the original post.
 
Thanks Guys. It is a new house.

Turns out the site is worth less €127K and therefore not liable for stamp duty. Confirmed by solicitor.

So I wronged the auctiuoneer for which I am truly sorry ;) .
 
Are you 100% certain that the site cost is the lower of the two figures mentioned above when determining the chargeable consideration?
 
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