stamp duty query

K

kate156

Registered User
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I have a SD query .. My self & brother bought a house jointly in galway 2 yrs ago he lives there. I now plan to buy a house in dublin . am I exempt from SD as floor area is under 125 sqm and I will be an owner occupier, I phoned revenue twice and got 2 differert answers . also 2 different solicitors gave conflicitng replies . Many thanks
 
Is the Dublin house a new-build? If so, the purchase could be stamp duty exempt.

However, the status of the Galway house is relevant. Do you still own half of it? Is it, or has it ever been, your PPR? What steps if any have you taken to change its status? (You may not have more than one PPR).

You need to give more information before we can comment usefully.
 
Many thanks

I never lived in the galway house as I always lived and rented in dublin .we bought it as a PPR .
 
Is the house in Dublin a new house?

Is your name on the deeds of the house in Galway?
 
Yes dublin house is new . both our names are on deeds of dublin house - it is under 125sqm, would appreciate any advice
 
I think if both of you had used Dublin property as your PPR then you'd be in the clear. As it's not going to be your brother's PPR then I think he's considered an investor and therefore stamp duty applies.
 
I don't think the OP is planning to buy the Dublin property with her brother-but then again her last post isn't clear when she says

both our names are on deeds of dublin house
Click to expand...
 
Apologies for not being clear. I am just buying the dublin property by myself
 
An owner/occupier of a new build under 125 sq. m is exempt from stamp duty. It does not matter if you own another property AFAIK, as long as you live in the Dublin one.
 
liteweight said:
An owner/occupier of a new build under 125 sq. m is exempt from stamp duty. It does not matter if you own another property AFAIK, as long as you live in the Dublin one.
Click to expand...

Well, yes and no.

If the OP is retaining the share of the house in Galway, then there is potential that the Galway house will now be re-classified as an investment property. There are definitely possible stamp-duty clawback issues with that, which may affect not only the OP, but also her brother.

The status of the Dublin property is moderately clear, that of the Galway property will have to be checked with Revenue. Indeed, if the OP bought it as a PPR but never lived there, there's a possibility there could be interest and penalties on any clawback and any mortgage interest relief that she has claimed.

This is a deceptively complex query, and one on which professional advice is needed so you can regularise your tax position quickly. I don't think you've been very tax-efficient in the way you've structured your purchases - it would have been far simpler had both of you gone on both mortgages but had your names on one set of deeds each. As is, there's a possibility that both properties may now be assessed as investment properties although you could have managed it so that both were assessed as PPRs.

Sorry...
 
Dreamerb is correct, you should seek professional advice.

Any chance that the Galway house was below the stamp duty threshold when you bought? Having said this, you never lived in the Galway house and yet claimed it as a PPR, so there actually should be a clawback.

If anything this query exposes the need for advice before you bought the Galway property.
 
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