Stamp Duty

J

Jimmy Bond

Registered User
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31
I intend to purchase a second house as a long term investment / holiday home - price €340K. The house will not be my PPR. Do I need to pay the full rate of stamp duty or is there any way to reduce the amount payable?
 
Does it make any difference on the stamp duty payable if the house is newly constructed? -ready by October 2006.
 
No, you'll be treated as an investor by the Revenue as it won't be your PPR.
 
It will make a differenceif the property is a newbuild, in that Stamp duty for a new house will be on the net of VAT cost.
On a sechondhand house stampduty will likely be on the full proceeds
 
ARCH said:
It will make a differenceif the property is a newbuild, in that Stamp duty for a new house will be on the net of VAT cost.
On a sechondhand house stampduty will likely be on the full proceeds
Click to expand...

Fair enough but most second hand homes will not have a VAT liability on top of the price. So it does not make a difference!
 
Fair enough but most second hand homes will not have a VAT liability on top of the price. So it does not make a difference!
Click to expand...

For a new and 2nd hand house of the same price, the price of the new house already includes a VAT element and the stamp duty will be payable on the price less VAT, so it does make a difference.
 
Taking into account the VAT on an new house, how much stamp duty will I have to pay on the purchase price of €340K (allowing for the VAT reduction).
 
The ex-VAT value would be just shy of 300k (340 / 1.135) I believe, so you would drop to the 5% bracket (although not sure if VAT would have been payable on the value of the land, so the reduction due to excluding VAT may be less).
 
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