Stamp Duty question

I am buying a house from my parents for a reduced figure of €225,000 the house has been valued as worth €450,000. My solicitor has told me that I would have to pay stamp duty on the €450,000 at 6% €27,000 and my mothers has said that it would be on the €225,000 at 3% (as I get the 6% halved) €6,750 as she will be giving the rest to me as a gift. Does anyone know which is the correct figure ? I have had a look on the Inland Revenue website and I have understood it to be classed as "Consanguinity Relief" so half the normal rate would apply.

Can anyone advise ?

I believe that it's half the normal rate that would apply to the full market value of the property (€450K) regardless of the fact that she may be gifting you half of the property/value. One way or another you will pay half the rate that normally applies (and I don't understand why your solicitor didn't realise this! ) so the key issue seems to be if/how the gift portion of the transfer affects matters. I suspect that it does not affect the stamp duty calculations but I am not a tax expert. You mention the Inland Revenue site which makes me wonder if you are, in fact, based in the UK or did you actually mean the (Irish) Revenue?

Assuming you are a first time buyer the correct formula would be 3% on €450,000.00 as stamp duty is always on the market value and indeed consanguinity relief applies between parent and daughter.

No offence Vanilla but, following on from the other thread in which the issue of solicitors and tax advice was discussed, here we ostensibly have yet another case of a solicitor (Amanda's solicitor not you!) getting basic tax advice wrong! Isn't that a bit worrying for the profession?

I did actually think that it would be 3% on the full €450,000 (as I understood it from the Irish Revenue website) and I do live in the UK. My solicitor didn't infact mention anything about the consanguinity relief it was my mortgage broker, and my mothers solicitor was the one who said it would be on the €225,000 "Purchase Price".

I will have to wait and see what my solicitor confirms, if not I may contact the Irish Revenue (if that is possible).

Have you had a full attendance with your Irish solicitor, and this advice was given as part of this attendance?

I have only spoken to my solicitor over the telephone, but in a letter from him he has noted the stamp duty as the full rate and no mention of the discount.

Then that is why.I doubt if anyone expects to receive anything other than preliminary advices and an estimate of costs on the basis of a telephone conversation. I am surprised if you highlighted the fact that it was a parent to child transfer that your solicitor didn't pick up on it, but in the event the transaction progressed, have no doubt but that he/she would do.