stamp duty when buying out share of house

[denise1234]

Hi, I know there's been previous threads on this and have read through them but none the wiser .

Basically myself and my sister own a house 50/50 - valued at approx €385, outstanding mortgage of €270.

I want to buy out her share (its my primary residence so house not bought as investment). Do I pay stamp duty on the purchase? It was already paid at time of initial purchase so seems odd to me that I am paying it again when am not moving house.

Friend of mine was in similar situation at the end of last yr and she didn't have to pay stamp duty. She contacted Revenue about this and has e-mail confirming this.
However, I contacted Revenue and got e-mail back saying
'Stamp duty is a charge on written documents and liability is assessed on executed instruments by reference of all the relevant facts and circumstances including the date of the deed ,consideration paid or the open market value of the property .
I can refer you to part 2 of Secn 1 of the Stamp Duties Consolidation Act 1999 ''Charging and Stamp Duty of Instruments ''

As I said, none the wiser, everywhere I turn am getting different answers and opinions! Can anyone help!

 

[Brendan Burgess]

The previous posts did not reach a definitive conclusion either.

Brendan

 

[mercman]

How I would see this at the moment is obtain a current value on the property, which may be somewhat lower than the value you stated.

Then as you are purchasing half the house the purchase price is half the value. So take it that the value is €340 k. Divide by 2 gives you €170k. The first €125k is exempt from Stamp Duty so therefore the amount taxable is €45k at 3.5% Stamp Duty - Half the normal rate as the rate is split in half when buying from a near blood relative.

Please excuse me if this is incorrect, but it is how I see it.

 

[mf1]

How I would see this at the moment is obtain a current value on the property, which may be somewhat lower than the value you stated.

Then as you are purchasing half the house the purchase price is half the value. So take it that the value is €340 k. Divide by 2 gives you €170k. The first €125k is exempt from Stamp Duty so therefore the amount taxable is €45k at 3.5% Stamp Duty - Half the normal rate as the rate is split in half when buying from a near blood relative.

Please excuse me if this is incorrect, but it is how I see it.

Apart from encouraging the OP to deliberately value the house lower? I would not recommend that unless the value of the property is in fact lower. The rest of the post is correct. There is also a provision where if both parties were ftb's that the buying out by one of the other may still be considered a ftb situation.

See from Revenue website

"What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house?


A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period. "

mf

 

[Laker]

If this house was your first purchase and you haven't purchased an interest in a house since then acquiring your sisters share will be seen as part of your first time purchase, i.e. no stamp duty to be paid.