Stamp Duty Help :(

D

Donnachain

Guest
Im a first time buyer and want to purchase a site in Galway which will cost 125,000 but the stamp duty is 8% which is 10,000. is there any way I can not pay this. i hate giving my money to the government for nothing.
 
Are you sure that your liability is 8%? If it is then there is no legitimate way to avoid this.
 
thank you for replying :) all the websites are saying between 125- up is 8% thats nearly all my savings :( so unfair.
 
Ger professional confirmation of your liability in case you are wrong. At the very least ask your solicitor.
 
Try and beat the seller down. You have nothing to lose. If you cannot do this, you cannot afford the site. You will have to look for a cheaper one.
 
ya ill have to try that thank you. i hope i am wrong. the thing is this is a great deal every where i look its 0.5 acre for 150,000. if i ever meet Bertie Ahern :mad:
 
Are you going to self build or get a builder in?

If the latter, a sale of a site together with a building contract is treated for stamp duty purposes as a sale of residential property - so if you are a first time buyer it would be exempt from stamp duty (subject to the sq footage limit) and if not, would qualify for the lower rates.

So, if you get a builder set up to build your house and then have the contracts structured so the sale of the site is conditional on you entering into a construction contract with the builder, you may avoid the stamp duty on the site entirely.
 
Really wow great your wonderful Nige;) thats great news. if i got a builder to say he would build do i have to start straight away r can i do it within maybe 4 yrs
 
Donnachain said:
Really wow great your wonderful Nige;) thats great news. if i got a builder to say he would build do i have to start straight away r can i do it within maybe 4 yrs
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I suspect that, if the building did not commence quickly, the Revenue would challenge the authenticity of the contract.
 
i dont think id have the money to finish it completely. what would signify a finish foundation, walls and roof :D but thank you so much for your help thats great news. your a great help.
 
Donnachain said:
i dont think id have the money to finish it completely. what would signify a finish foundation, walls and roof :D but thank you so much for your help thats great news. your a great help.
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I really don't know.

Stamp duty (and the stamping of the deeds) is quite a technical issue. Hopefully your solicitor will be able to provide some guidance on how much of the build you would need to qualify for this relief.
 
I think that the proposal to rope in a builder would bring about the result that VAT (@13.5%) would be due on the value of the site as well as the building works.
 
im getting a mortgage at the moment by i cant get enough money on my own so my brother is going to co sign the mortgage for me to say if i wont pay it he will. as im the first time buyer and he isnt will i get caught for stamp duty because we are not both first time buyers?? or will it matter because its me thats buying it he is just the co signer helping me get more money.
 
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