Stamp Duty when in family sale

F

flyingfrog

Guest
Hi

I'd be grateful if someone could help with a stamp duty house buying tax problem. I am planning to buy my mothers home to live in (which she owns outright) for the market value of 320k. With the proceeds, my mother is buying a smaller place to live which costs 190k.

Even though the house is transferring ownership from my mother to me (and my wife) I gather I'll have to pay a large amount of stamp duty (10k). Does anyone have a suggestion for a way to minimise the amount I’ll have to stump up?

I'm buying the place with a mortgage of around 70% and a cash deposit of the other 30% (from savings).

All suggestions much appreciated.

Thanks,
 
Since the last budget the first €125K is exempt, so you would be liable for 7% of €195K which is €13,650. But AFAIK stamp duty on purchases from immediate relatives is only half this rate. If I'm right you would only have to pay €6,825. www.revenue.ie have all the details.

Your post does not say either way, but if you and wife are both first time buyers dont think you are liable for any stamp duty.
 
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twofor1
that relief would only apply if op buys in sole name - his wife is not a blood relative.
 
juke,

Fair comment.Is he entitled to claim the reduced rate on his share ?
I suppose this is how the op's €10K was calculated.
 
juke,

Fair comment.Is he entitled to claim the reduced rate on his share ?
I suppose this is how the op's €10K was calculated.

No. Unfortunately. One option would be for the house to be sold to him in his sole name, with him and his wife on the mortgage - as far as I know, there is no revenue guideline preventing this (unlike with first time buyer relief). Of course, the bank would have to agree.
 
Yes thats the way I did it. Buy in sole name. Joint names on mortgage. Bank should be only too happy to get two people named on mortgage. Transfer house to joint ownership after 5 years - no difficulties.