Stamp duty on rental property

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Ph03n1x

Guest
Hi all,

Hope you can help...
I'm a second time buyer, bought house in August 2008 (300K) and rented it out in December 2008.

Unfortunately I did not look into the stamp duty element of it before I rented it out and am now kicking myself. I am only planning to rent it out until September 2009 and move back in myself for good.


  • What % is the stamp duty that I will have to pay?

  • What do I have to do now in terms of notifying the revenue etc....
 
The renting of the property will have no difference to the Stamp Duty on purchase especially as it not a First Time Purchase. Therefore if the purchase is a straight purchase (from a person non-connected) the stamp duty rates should have been as per the normal rates. You will have to declare your rental income to the Revenue (less interest, expenses,etc.) next October for December '08 rent and October 2010 for this year.
 
What stamp duty did you pay when you purchased in Aug '08? If you had an exemption, on what basis did you claim it?

If you claimed exemption on other than an FTB basis (e.g. if it was a new property and the floor area was under 125 sqm) then renting it out prior to the 2-year period would mean that all of the stamp duty you should have paid will be payable.

Can you clarify what stamp duty you paid initially?
 
I didnt pay any stamp duty (owner occupier) as I had originally planned on living there from the outset.

However circumstances changed and had to rent it out for a while - regretting it now...
 
From my reading of things you are liable to pay full ie investor stamp duty on the property as would have been paid day one... You seem to have gotten the new property relief which means you paid no stamp duty at all..


From Revenue website:
Clawback
A clawback arises if rent is obtained from the letting of the house or apartment within a period of 2 years from the date of the conveyance or transfer, other than under rent a room arrangements. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property.
Since you paid none, you are now liable for the full amount you should have paid. Here's the bad news...it's due 30 days after you first rent the property, so there will be interest and penalties due too....
 
keff - you have got a handle on this. Ph03nix i interpreted your posting incorrectly. You'll have to pay before they place penalties on you.
 
I'm not clear on how OP was exempt if s/he was a second time buyer (albeit an owner occupier) if the property was not new (and under 125 sqm). From what I gather, although the TRS rules for FTBs consider a person to be an FTB for 1+6 years after first purchase (no matter how many times you buy a PPR in that intervening period), the stamp duty rules are actually more logical in that you can only be an FTB once and the only other exemption for owner occupiers is the new/under 125 sqm exemption.

Agreed that OP has to pay back the stamp duty but I'm wondering about the exemption still - OP, can you confirm if the property was new when you bought it?
 
Hi, the property was new and also just under 125 sqm. I bought it in August 2008
 
PS I'm still not sure what kind of money I'm going to have to pay - anybody got any insight on the hard cash!?!? House was 300K
 
The stamp duty rates are [broken link removed]. So you'd pay zero on the amount up to €125k and 7% for the amount over that. So €12.25k plus interest and penalties.
 
That figure may be reduced depending on what portion of the 300k represented vat - the contract documents when you bought will tell you.

Also - avoid the penalties by paying before 17th February 2009
 
Do you pay VAT on property? I paid SD on the full purchase price of my gaff....

Also (out of curiosity) - where's that 17th Feb date coming from? Do you get a grace period after the 30 days?

Thanks
Sprite
 
The purchase price of new builds includes vat at 13.5 %. You don't pay stamp duty on the vat element. However - if the price is split between the site and the building costs, vat might only be included in the building costs figure - not the site - so to calculate the stamp duty accurately, you need to check the contact for the site and the building agreement.

There's currently a stamp duty amnesty in place - to encourage people who have a stamp duty liability which hasn't been paid.

So any deeds not yet stamped (regardless of when executed), if presented before the revenue by the 17 February will not incur penalties - just the relevant stamp duty and interest.
 
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