Stamp Duty when in family sale

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.

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.

twofor1 said:

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.

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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.