Stamp Duty Question

M

Mr Trager

Guest
Hi,

Im sure this has been asked before but I can't find the answer in a search. I purchased a house with a friend 3 years ago for 270,000. Although both first time buyers we had to pay stamp duty as it was before the exemption was introduced.

I am now buying my friend out of the house. The price is 340,000. Will I have to pay stamp duty on the purchase of half the house?

Thanks.
 
Mr Trager said:
Im sure this has been asked before but I can't find the answer in a search. I purchased a house with a friend 3 years ago for 270,000. Although both first time buyers we had to pay stamp duty as it was before the exemption was introduced.
Click to expand...
It was a second hand house presumably?
 
That's correct. It was second hand when we initially bought it.
 
I don't think you will. You should seek professional advice to confirm.
 
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If account is taken of an outstanding mortgage ( say for arguments sake: E250K ) then 340K less 250K is 90K of which 45K is the actual equity to be paid to the other person. That is under 127K so it is possible that stamp duty will not be due.

There are conflicting views as to whether this method of calculation is acceptable to Revenue - I've successfully battled with them before on it. In a case where a lender joins in a Deed and releases one person from the mortgage, consents to the transfer of the property into the other named owners name and that person becomes solely responsible for the mortgage, on the above figures, there would be no stamp duty liability. So why should it be different if the person to acquire takes out a new mortgage?

Its worth getting proper advice on this.

mf
 
Just to let you know that I contacted my solicitor and the revenue on this and I will not be liable for Stamp Duty. They advised that because I have not bought another property I am only increasing me interest as a first time buyer on 50% of the value of the property which is under the 317K. So no stamp duty applies. Good news for me. Hope it is useful to others.

Thanks for the replies.
 
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