Stamp duty

If I bought an apartment as 1st time buyer in 2003 and in January 2005 I moved out and started to receive rent in that month, I am liable to a stamp duty clawback. I am also liable to make a tax return for the rental income. I know that I do not have to make my first tax return until this October but my question is:

When am I due to pay the stamp duty? I know that it becomes payable from the first day I receive rent but:

How long do I have to actually hand the money over to revenue?

What happens if I'm late? and,

I jointly own the property with a friend and so am only liable to half of the stamp duty. Is it ok for me to just pay my half to the revenue and let my friend worry about his half or does the whole lot have to be paid at the same time?

Thanks.

Jimbob2 said:

How long do I have to actually hand the money over to revenue?

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I always assumed that it was as soon as the property was rented out.

What happens if I'm late? and

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Possibly nothing. Possibly interest and/or penalties. Get an accountant to prepare a return for you as they would help to save more than their fee by doing it properly.

Claw back duty becomes payable from the date the property is first rented you then get the standard 30 days to pay. There is a claw-back section of the stamps branch in Dublin castle, I don't think there is a specific form for this, I have paid clawback by writing a letter setting out the date of first rental and the duty calculation. A solicitor would be better than an accountant to do this for you as in my experience accountants don't know too much about stamp duty but property solicitors deal with it on a daily basis. The duty is the amount you would have paid when purchasing if you were and investor so if it was a new property you get to deduct the vat paid before calculating the duty.

I don't think you'll be able to pay the duty separtately to your co-owner, the duty is due on the deed transferring the property to you both. If only half the duty is paid the revenue won't allocate this payment to one of the owners only. It would require a trawl through the legislation to clarify this. As it has to be paid anyway and as you are probably going to have to employ a proffessional to to it you might be as will to do it together.

Many thanks for the replies. I'll contact my solicitor.

A few Q's:

1. Is VAT for New Properties deductable at 13.5% (Service) or 21% (Materials)?
2. So If I declare Stamp Duty Clawback I can deduct VAT and then multiply by the rate I would have paid had I been an Investor at the time? Is that correct? Is the 5 yrs exemption from when you sign the contracts or when you move in?
3. So I'm not liable for CGT on selling my new property - even if I'm not there for 5 yrs? Is this correct?
4. How about my next property? Would we be exempt from CGT on all PPR's as we move over the years?

carrig06 said:

So I'm not liable for CGT on selling my new property - even if I'm not there for 5 yrs? Is this correct?

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An owner occupier selling his/her PPR is exempt from CGT - even if this was rented out or left vacant for up to 12 months after vacation and a move to another PPR. Otherwise (i.e. it is rented out for more than the post vacation 12 month period) some portion of any resale gain will be assessable for CGT. This is separate from the SD clawback which applies in any case where a PPR is rented out other than under the rent a room scheme within five years of purchase.

How about my next property? Would we be exempt from CGT on all PPR's as we move over the years?

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If it is you PPR, disposed of within 12 months of vacation and is not rented out other than during that 12 months or under the owner occupier rent a room scheme then no CGT liability arises.