Stamp Duty Thresholds & Valuing House Contents

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taytoman

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Hi

We are selling up in Dublin at th moment, and looking to move to a larger house. Our house has been valued in the current market at 650K- 670K, but estate agents have told us it potential bidders will "stick" just below 635K, as if they go above this, they will straight away pay 19K extra in stamp duty, as they move from 6% to 9%. One way around this would be to say sell the house for say 634K and then the vendor would pay us separetly for the fixtures and fittings (contents)

Q. What what be the sort of value we could realistically put on contents, before revenue would be unhappy. Its a 4 bed semi, 1700 square ft, recently (2 years ago) fitted wardrobes and kitchen for 12K, otherwise contents fairly standard
 
As far as I know ....

Splitting the house and contents values will make little difference for SD purposes since it is the combined value of the two linked contracts that will determine the SD band/rate which will then be applied to the house value. You cannot get into a lower SD band by splitting the sale in this way. Again and again some people (including some professionals who should know better) claim that you can avoid SD by splitting contracts in this way. This is incorrect and to do so is to engage in tax evasion if I'm not mistaken.
 
Thank u clubman

Is it that whilst the total price (house + contents) determines the stamp duty %, you only pay stamp duty on the contents only???

So say you sold for house 634K + contents 20K, the stamp duty % would be 9%, and the 9% would be payable on 634K not 654K???
 
taytoman said:
Is it that whilst the total price (house + contents) determines the stamp duty %, you only pay stamp duty on the contents only???
Click to expand...
No.
So say you sold for house 634K + contents 20K, the stamp duty % would be 9%, and the 9% would be payable on 634K not 654K???
Click to expand...
Yes.

That's my understanding anyway - get professional advice if in doubt (and not from an estate agent etc.).
 
Some things that people often forget..........

1. Your purchaser will more than likely be getting a 90% mortgage. It will be 90% of the value of the property - not 90% of the property plus contents.
So potential problem with mortgage.

2. Contents valuation. 20K is a lot for your bog standard 4 bed semi. The wardrobes and kitchen are regarded as fixtures and would be viewed by Revenue as being part of the price. If Revenue query the deal, you need a reputable (sorry, is that an oxymoron?) EA to put a written value on them.

mf
 
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