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Stamp Duty Clawback

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  • 28-08-2007 3:19pm
    #1
    vivien
    Registered Users Posts: 41 ✭


    Hi

    This isn't exactly a state benefit, but it's to do with the state so thought this might be the right area.

    Can anyone tell me exactly the rules of the Stamp Duty Clawback in relation to renting out accommodation?

    Thanks


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Up to Jan '07 if you rented out your house/apartment that you purchased as a First Time Buyer and qualified for reduced stamp duty as a FTB- in the first 5 years of ownership, you loose your status as a First Time Buyer and instead have to pay stamp duty as an investor, and the difference between what you paid and what an investor would have had to pay is clawed back. In Jan '07 this rule was relaxed somewhat- to 2 years.

    In short the favourable stamp duty afforded to First Time Buyers- is a scheme whose aim to put a roof over the head of FTBs, not an aid towards acquiring an asset that will be used for other than their own home.

    Note: the letting of rooms in a home by a First Time Buyer is not affected by this clawback- the clawback only comes into effect when the whole property is let. (I.e. a FTB can quite happily use the Rent-a-room scheme to top-up their income and as an aid towards paying their mortgage).

    S.


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