Revenue

blahblah06

Hi guys. strange one. i bought the house of my gf ie bought her out she got her money etc but now the revenue are looking for an estate agent to do an evaluation. is this to do with stamp duty ?

juke

Stamp duty is payable on the amount of money you gave your gf, or the market value of her share, whichever is the greater. In cases like this the revenue almost always look for market valuation to confirm the amount due.

Did you take out a mortgage? If so, your lender would have required a valuation - a copy of this will suffice.

(If the value of the share is less than the standard threshold depending on whetehr you are a FTB etc - no stamp duty payable, of course - but the transfer deed still has to be assessed by the revenue)

blahblah06

edit

juke

Well...depends when it was done

If you did the purchase before the application date for the change in rates for FTB's (31/3/2007) and the value of the house is more than 317,500.00, then it's likely.

If it was after, then as a FTB you won't be liable - check out:

http://www.revenue.ie/leaflets/ftb_stampdutyguide.doc

I presume you bought it from her outright, and you weren't joint owners before?

blahblah06

hey juke i only did the app about 3 months ago and got the money 2 weeks ago.

we were joint owners alright and I bought her share off her. we bought the house in jan 06

The_Conductor

juke wrote:

Well...depends when it was done

If you did the purchase before the application date for the change in rates for FTB's (31/3/2007) and the value of the house is more than 317,500.00, then it's likely.

If it was after, then as a FTB you won't be liable - check out:

http://www.revenue.ie/leaflets/ftb_stampdutyguide.doc

I presume you bought it from her outright, and you weren't joint owners before?

Its my belief that the OP no longer qualifies as a FTB, that the original purchase exhausted this benefit, despite the fact that the current transaction relates to the same property. A solicitor will clarify this matter.

blahblah06

ye i still have my ftb solicitor told me this at the start of buy out

CelloPoint

smccarrick wrote:

Its my belief that the OP no longer qualifies as a FTB, that the original purchase exhausted this benefit, despite the fact that the current transaction relates to the same property. A solicitor will clarify this matter.

Ouch...

If the OP bought her out at 50/50 + half of the increased value, does this mean the OP's gf would be classified as an investor and therefore liable for stamp duty plus CGT on the profit?

So does all this mean that both the OP and the OP's gf are both liable for CGT on the same property?

One thing's for sure though, there'll be no down-turn in business for solicitors, what with all these unmarried couples entering in to arrangements like this.

CelloPoint

blahblah06 wrote:

ye i still have my ftb solicitor told me this at the start of buy out

Then maybe neither you nor your gf are liable for CGT at all then? It's just your gf has now forfeited her FTB allowance and now must pay stamp duty on any property she buys in future.

I wonder why the revenue is on to you? How much did you buy your gf out for (if you don't mind me asking)?

juke

blah.....

Yes - you keep your ftb status - below excerpt from revenue Q/A

"What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house?

A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period."

In any event, if you owned 50:50, then in fact you bought her 1/2 share - ie value of €170,000.00 - not the full current value.

As regards CGT - if she was living in the house as her principal private residence (ie home), then this tax doesn't apply.

Seems you're safe:)

blahblah06

thank god for that. i owe you a pint. ill let you know when they get back to me

blahblah06

hi guys worked out that I didnt have to pay stamp duty but i have another question

what way does the trs work. am i entitled to the same amount as i would have as a couple or do i lose out on this aswell? thanks

The_Conductor

blahblah06 wrote:

hi guys worked out that I didnt have to pay stamp duty but i have another question

what way does the trs work. am i entitled to the same amount as i would have as a couple or do i lose out on this aswell? thanks

If the mortgage is now just in your name, then you are only eligible to claim TRS on your own behalf. Maximum TRS on mortage payments for a first time buyer did double from the 1.1.07 though- to €1,600- so its not as bad as it might otherwise have been.

As your circumstances have changed- you should re-apply online for your TRS immediately (link here)

There is a handy explanation of how mortgage TRS works here

Regards,

SMcCarrick