VAT Back On Home Stamp Duty

X

xity

Guest
I heard on one of the radio business show's that a lot of people who purchased houses may be entitled to money back because they may have been charged VAT on top of stamp duty, which is of course a form of tax in itself.

Has anyone else heard of this? or been in this situation?

Also, can you claim tax back on solicitor’s fees?

Many thanks
 
Actually its the other way around - apparently people have paid stamp duty on the vat-inclusive price of the property when it should have been calculated on the vat-exclusive price

No you cannot claim tax or vat back on solicitors fees in relation to a property acquisition, except maybe for CGT purposes if CGT applies on the eventual disposal of the property
 
ubiquitous said:
Actually its the other way around - apparently people have paid stamp duty on the vat-inclusive price of the property when it should have been calculated on the vat-exclusive price
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This only applies to new houses so ?
 
Hi,

I actually got a refund a couple of months ago from Revenue. Apparently my solicitor erred and sent on a cheque for the stamp duty on a new( as in newly built) house.The house cost 205K, I think we paid initially €8200 and then got back a cheque 3 or 4 months later for €1800.

I did not apply for the refund and probably would never have realised the mistake.

Needless to say we were delighted.
 
Also ASAIK, the refund of stamp duty only applies to an investor purchasing a new property,, and in this instance the SD is calculated on the vat exclusive purchase price.
 
Thanks all

Is this defiantly relevant to newly built homes only? and if so why?

I purchased my home (second hand, owner-occupier) in July 2003, is it worth ringing revenue to investigate if anything is due back to me?

I missed out on the SD exception before mid 2003 and after late 2004, (I feel cheated) so any claw-backs would bring a bit of satisfaction.

Best
 
xity said:
Is this defiantly relevant to newly built homes only? and if so why?
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Yes, because VAT is only charged on new products not secondhand goods.
 
...., because VAT is only charged on new products not secondhand goods.
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This is incorrect as there is no exemption for secondhand goods in the VAT code. If a trader in secondhand goods crosses the VAT turnover threshold, they must register like anyone else.
 
Yes, VAT is chargeable on properties other than new builds, mainly on developed property, commercial property and so on, but in the case of this poster, it is unlikely that a buyer of a home from the seller of a home of a second hand house would be dealing with any VAT.
 
Just to clarify on my previous post - The stamp duty refund was for an investment property.
 
You would probably have to have bought a new house as an investment property like Igora as new homes under 125 sq metres in size are exempt for owner occupiers.
 
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