Stamp Duty on new house (not first time buyer)

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thejuggler

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I am a little confused about the stamp duty situation for new houses. My wife and I are second time buyers and were under the impression that if we were to buy a new property under 125 square metres in size no stamp duty would be payable if we are to live in the new property (ie be owner occupiers)
However I have enquired with an estate agent about a newly built property which is for sale (and is well under 125 sq metres) and he says stamp duty would be payable. Why is this?
 
thejuggler said:
I am a little confused about the stamp duty situation for new houses. My wife and I are second time buyers and were under the impression that if we were to buy a new property under 125 square metres in size no stamp duty would be payable if we are to live in the new property (ie be owner occupiers)
Click to expand...
Correct.
However I have enquired with an estate agent about a newly built property which is for sale (and is well under 125 sq metres) and he says stamp duty would be payable. Why is this?
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Don't assume they know what they're talking about. Don't expect accurate tax advice/info from a sales person. If the property is actually new and not technically second hand then no SD applies to FTB or non FTB owner occupiers.
 
What's there to explain? FTB and non FTB owner occupiers of new properties under 125sqm are exempt from SD. End of story.
 
My Sister-in-law is looking at a newly built house in Cork, It says in the brochure that it's 128m2, but it also says there's no stamp duty for owner-occupier? How can this be? I thought the cut off point was 125m2.
I’m a missing something?

She not a first time buyer also, but she will be owner occupier

Is the builder been generous with the sq.m's on the brochure, but its actually 124.9m2 in real life?
 
Does this explanation help


From revenue site


Over Floor Area of 125 sq. m

New houses or apartments which are purchased by an owner occupier (including a first time buyer) where the total floor area exceeds 125 square metres are charged with duty, at the appropriate residential property rate as per the table above, on the site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback.The size of the floor area must be certified by a qualified architect, engineer or surveyor
 
whats the above table?

So, the house is 450,000, so is that 25% of 450000 = 112,500 is subject to stamp duty? i'm not sure of the land value?

It still doesn't explain why the builder is saying theres no SD?

I'm still missing something!
 
I rang the EA selling the property and was told by a very "helpful" person that there’s is no SD on that house and was told that "there's some form that must be filled out and to look at the revenue.ie website"
 
mc-BigE said:
whats the above table?

So, the house is 450,000, so is that 25% of 450000 = 112,500 is subject to stamp duty? i'm not sure of the land value?

It still doesn't explain why the builder is saying theres no SD?

I'm still missing something!
Click to expand...


Yeah, the "Chargable Consideration" must be above €127k. Amounts under this are exempt.

[broken link removed]

Over Floor Area of 125 sq. m
New houses or apartments which are purchased by an owner occupier (including a first time buyer) where the total floor area exceeds 125 square metres are charged with duty, at the appropriate residential property rate as per the table above, on the site value (excluding VAT) or one quarter of the total value of the house including the site (excluding VAT), whichever is the greater, subject to clawback. The size of the floor area must be certified by a qualified architect, engineer or surveyor
Click to expand...
 
Ah! the penny drops! i was looking at the wrong Table on the revenue website (the one for second hand properties)
 
Posted by mc-BigE

Whats the above table
Click to expand...

Sorry, I just copied from the Revenue site without reading properly. I should have copied or linked the table as well.

So, the house is 450,000, so is that 25% of 450000 = 112,500 is subject to stamp duty? i'm not sure of the land value?
Click to expand...

This is my understanding of how to apply the calc

House incl site 450,000 less Vat 13.5% = 396,476
Calc then 396,476 @ 25% = 99,119
This is less than the 127K at which SD becomes payable.
 
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