Stamp Duty Owing

T

tnmf

Guest
Hi guys

A friend of mine has just got a call from the tax office telling him that he owes them a large sum in stamp duty.

I'm not sure on all the details but here's what I know:

  • he bought his apartment new in 2006
  • he moved into the apartment himself
  • the mortgage may have been too much on his own so he moved in with a friend and rented the apartment through a letting agency for about 5 months
  • the rent received was still less than the mortgage repayments
  • he moved back in 2007 after renting it at a loss for those 5 months
  • neither the letting agent nor the solicitor mentioned anything about the stamp duty
Is there anything that can be done to avoid paying the stamp duty?
 
Nope, he bought as an owner occupier and then acted as an investor.

He should have come clean when the Revenue announced their crackdown on these type of activities rather than waiting for them to find him.
 
tnmf said:
Hi guys

A friend of mine has just got a call from the tax office telling him that he owes them a large sum in stamp duty.

I'm not sure on all the details but here's what I know:

  • he bought his apartment new in 2006
  • he moved into the apartment himself
  • the mortgage may have been too much on his own so he moved in with a friend and rented the apartment through a letting agency for about 5 months
  • the rent received was still less than the mortgage repayments
  • he moved back in 2007 after renting it at a loss for those 5 months
  • neither the letting agent nor the solicitor mentioned anything about the stamp duty
Is there anything that can be done to avoid paying the stamp duty?
Click to expand...
Can you tell me how the revenue found out about this ?

I have a couple of friends who bought houses, rented them out and never lived in them.
They got First time buyers grant, new builds so paid no stamp duty as owner occupier, and have never declared the rental income for the past 6-7 years.

4k First Time buyers grant
10k Stamp duty
tax on rent at 15k per year @ X%
Throw in some fines for good measure I reckon they owe about 50-60k each to the revenue.

They think they are away clean, mates so wouldn't shop them, but wouldn't have any sympathy if they were caught.
 
No idea how they found out. I assume it was because it went through a letting agency.
 
Is this only if your no longer owner occupier? Im renting out a room and have declared this under rent a room relief and no one has mentioned anything about stamp duty?
 
The rent a room scheme allows you to rent a room to a private tenant for a maximum of €10,000 per annum. If you go above this amount of rent per annum you will be liable for stamp duty even if you are still an owner occupier.
 
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