Stamp duty - new - non FTB?

Hi,

For a new house exceeding 125 sq.m stamp duty is calculated:

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.

Does the latter mean (25% of the site cost) plus building costs (less vat)?

Or

Is it 25% of (site cost plus building costs less vat)?

techman

The latter as far as I know.

techman said:

Hi,

For a new house exceeding 125 sq.m stamp duty is calculated:

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.

Does the latter mean (25% of the site cost) plus building costs (less vat)?

Or

Is it 25% of (site cost plus building costs less vat)?

techman

Click to expand...

we were having a discussion about this today and I'm still trying to get my head around it.

Is there any worked examples on the net?

Doesn't the Revenue guide to SD have worked examples?

Finally got through to the Stamp Office by phone.

It is the latter as Clubman pointed out.

I emailed the Stamp Office this evening just to confirm what I was told by phone.

According to the email, it's (25%of the site cost) plus building cost(less VAT)!

Any solicitor out there that can clear this up?

techman

I am not a solicitor but a qualified tax consultant

It is 25% of total cost so it would be 25% X (site cost plus Buliding cost less VAT)

Here is an example from tax manual published by the

New houses and apartments
Owner occupiers (including first-time buyers)
In general, the rates of stamp duty are now the same for new and second-hand residential property. However, owner occupiers who buy new houses or apartments may qualify for further reliefs:
If the new house/apartment is not larger than 125 square metres/1345 square feet, and qualifies for a floor area compliance certificate (issued by the Minister for Environment, Heritage and Local Government), it is exempt from stamp duty, provided the purchaser is an owner occupier (s. 91A, SDCA 99).
If the house/apartment is larger, and the purchaser is an owner occupier, duty is payable on the higher of:
The site cost
25% of the total cost of the house.
The duty is payable at the rate appropriate to the amount on which duty is charged, rather than at the rate appropriate to the total price (s.92, SDCA).
Example
An owner occupier (who is not a first time buyer) buys a new house for €800,000. The site element is €150,000. The house is too large to qualify for exemption under s.91. However, it qualifies for relief under s.92. Duty is payable on €200,000 @ 4% = €8,000 (i.e. duty is payable on 25% of the cost).
If the site element were €250,000 instead of €150,000, duty would be payable on €250,000. The amount payable by an owner occupier who was not a first-time buyer would be €250,000 @ 4% = €10,000.


To clarify section 92 SDCA 1999 states

...........on an amount which is the greater of-
(a) any consideration paid in respect of the sale of that land, and
(b) 25 per cent of the aggregate of the consideration at paragraph (a) and the consideration paid, or to be paid, in respect of the building of the dwellinghouse or apartment on that land.";