Stamp duty

H

Haille

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I purchased my parents original family home from my brother back in August 2007 for an agreed price of €125,000 as it was in a serious dilipadeted state due to dampness and no insulation.I have spent the last 6 months full time trying to upgrade the house I am on early retirement.I have spent approx.€20,000 on it .Revenue now 6months later want me to get a market valuation of property to determine if I have to pay stamp duty as transaction was from brother.Valuer is due to call next week. My question is will the renovations push the value of the property up making me elegible for stamp duty. If so which stamp duty rates apply ,rates before or after 5th.Nov.2007.
 
Did you get a valuation done back in August 2007 or was it just a "seat of the pants" number agreed between siblings?
 
125K was a very, very,very, very low amount for any house, anywhere, and is astonishingly close to the stamp duty exemption threshold. That is why Revenue have picked up on it.

It may be that that is what the property is worth but you are going to have to satisfy Revenue that it was not an arbitrary figure plucked out of the air for convenience. If Revenue do not agree with that value, they will have their own valuer value the property as at the date of the sale and, if they find there is a serious discrepancy, you may find youself paying interest and penalties on any undervalue.

mf
 
Haille said:
I have spent approx.€20,000 on it
Click to expand...

Do you have all the receipts? did you take photos all along your project? It may help at proving how much work this property required and why you paid €125k for property.

To put things in perspective, for €125k, you just about buy a derelict cottage on about 3/4 of an acre in the woods....
 
Looking for clarification on rate of stamp duty on sale between brothers if both brothers are married.
 
Stamp duty on property transfers between blood relatives qualifies for consanguinity relief meaning that it's at half the rate that would otherwise apply. Not sure what happens if the transfer is from a brother and his wife to his brother and his wife.
 

In that case as not all parties are related no consanquinity relief applies i.e normal stamp duty rate will apply.
 
I presume so. But presumably a brother could transfer to his brother in their sole names? If necessary the first brother could transfer the asset from his and his wife's joint names to his sole name first and the second brother could transfer the asset to his and his wife's joint names subsequently. The inter spousal transfers are free of SD and the transfer between brothers qualifies for consanguinity relief. Correct? I have no idea whether or not this might fall fould of Revenue's anti-avoidance rules though. Hence my circumspection above.
 
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