Stamp Duty on second Residential Home (FTB)

Stamp Duty on second hand Residential Home (FTB)

Hi both myself and my wife are first time buyers. Can anyone please answer the question below that I have in regard to this.


I was told that you pay stamp duty on the value of the house - VAT(12%)
So if the house was costing say, 360,000 that would be
360,000 - VAT (12%) = 316,800.
So do I pay stamp duty, 4.5% on 316,800 or am I exempt from stamp duty becuase it is under the 317,000 threshold?

Thanks in advance.

yes but usually only if its new. btw it is 13.5% not 12

The deduction of the V.A.T from the gross purchase price only applies to new houses, as Eamon66 rightly says. However, the stamp duty computation on a new house for an owner occupier (whether FTP or not) is not based on this anyway. Briefly, for a first time buyer (and owner occupier) of a new house the situation is as follows:

1 If the house is "grant sized" (125 sq. mtr. gross internal floor area), and there is a "floor area compliance certificate" there is no stamp duty. EXCEPTION: stage payment houses, where the transfer deed is signed before the certificate issues. (a problem about which the Law Society are lobbying).

2. If the house is over grant size, it is exempt from stamp duty unless the gross price goes over €1,441,450.00 OR the site price as a separate item (but as part of a house-plus-site transaction) goes over a gross price of €360,362.50.

For an owner occupier who is not a FTB, the corresponding figures are €576,580 for house or €144,145 for site as separate item.

For a second hand house, gross price is all that counts.

If there is a civil service prize for drafting taxing statutes with needless complexity, the boys in the stamp duty section must win it every year.

MOB said:

If there is a civil service prize for drafting taxing statutes with needless complexity, the boys in the stamp duty section must win it every year.

Click to expand...

I'd say the PRSI lads run them a close second though!

Thanks guys.

Now I'm confused!

"For an owner occupier who is not a FTB, the corresponding figures are €576,580 for house or €144,145 for site as separate item."

If I (non-FTB, owner occupier) were to buy a site for <€144,145 and build a new house on the site (>125 sq.m) for €250,000 by direct labour, I would not be liable for any stamp duty?

I thought I would be liable for 8% stamp duty on the site purchase.

MOB?

If I (non-FTB, owner occupier) were to buy a site for <€144,145 and build a new house on the site (>125 sq.m) for €250,000 by direct labour, I would not be liable for any stamp duty?

No; the important issue here is that you are not buying the site as part of a house-plus-site transaction. It is common for builders to have an arrangement where they sell new houses in two related transactions - contract for sale of site and contract for construction of house. This has no relevance to the person who buys a site and develops it himself.

Ok MOB, just to be clear, I would liable for stamp duty on the site purchase.

Is that what you are saying?

If you buy the site on its own you pay stamp duty on the site.

If you buy a new house as a FTB you pay stamp duty on the higher of the site value or 1/4 of the total cost of the house including site.