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Stamp Duty on New House over 125 Sq M

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  • 06-12-2007 1:51pm
    #1
    alanmccormack
    Closed Accounts Posts: 14 ✭


    Hi, Can anyone confirm what is the exact position (post Budget 5/12/07) on an owner occupier (non first time buyer) buying a brand new house with a floor area that is greater than 125 Square Metres please?

    It used to be that Stamp Duty was levied on either the value of the site OR25% of the value of the built property (excluding VAT), whichever was greater. This resulted in no stamp duty unless the site cost over €127,000 or the property's value was over €508,000.

    I'd be extremely grateful if someone out there could tell me categorically what the position is now.

    Thanks very much

    Alan


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    As best I can tell, new houses over 125 Sq.m. now fall into the standard standard rules of being exempt on the first €125k


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    #3
    alanmccormack
    Closed Accounts Posts: 14 ✭alanmccormack


    Hi, I've been looking into this, as my situation is that I want to buy a new house over 125 Sq M but I'm not a first time buyer and, from what I can come up with in my searching nothing has changed with regard to new houses.

    I found this:
    "The exemptions that apply in the current system - for example, in relation to first time buyers and buyers of new homes - will be retained"

    at: http://www.rte.ie/news/features/budget2008/speech/chapter10.html


    and this:
    "First-time purchasers of all residential property and other owner-occupying purchasers of new residential property under 125m2 are exempt from stamp duty. Other owner-occupying purchasers of new residential property over 125m2 are liable to stamp duty on the greater of the site value or 25% of the property value (excluding VAT) at the standard rates, thresholds and exemption."

    at: http://www.budget.gov.ie/2008/downloads/AnnexG.pdf


    So, from what I can gather Owner Occupiers are still exempt from Stamp Duty on new houses, no matter what the floor area is, as long as the site costs less than €127,000 and the property is valued at €508,000 (4 x 127,000) ex. VAT or less.

    I stand to be corrected, any solicitors out there?


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    #4
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    alanmccormack wrote: »
    So, from what I can gather Owner Occupiers are still exempt from Stamp Duty on new houses, no matter what the floor area is, as long as the site costs less than €127,000 and the property is valued at €508,000 (4 x 127,000) ex. VAT or less.
    That's what it seems to be saying.


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    #5
    juke
    Registered Users Posts: 1,673 ✭✭✭juke


    I agree Alan.

    Don't forget, some contracts for the site state that the purchase price is vat inclusive (don't ask me why) - so if the site value is more than 127,000 - there still may be an exemption


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    #6
    alanmccormack
    Closed Accounts Posts: 14 ✭alanmccormack


    Phew, I'm so relieved!

    When I looked at the updated information about Stamp Duty on myhome.ie it leads you to believe that you are now going to be liable for the new duty rates at 7%.

    I was gutted, so I did some searching around and I think I'm right now. We are going to buy a new house early next year and not having to pay Stamp Duty makes a massive difference, somewhere between €17,000 to €22,000 on the houses that we are looking at!


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    #7
    Brainz
    Registered Users Posts: 205 ✭✭Brainz


    if you are a second time buyer or in that catagory any new build homes over 125 sq/m is subject to stamp duty -

    the rate it is calculated = the amount you are buying for les 125 k multiplied by 7% example

    house 300 k less 125k thresehold = 175k @ 7% = 12,250 compared to the previous calculation of 300k@ 6 % = 18k


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    #8
    alanmccormack
    Closed Accounts Posts: 14 ✭alanmccormack


    Brainz wrote: »
    if you are a second time buyer or in that catagory any new build homes over 125 sq/m is subject to stamp duty -

    the rate it is calculated = the amount you are buying for les 125 k multiplied by 7% example

    house 300 k less 125k thresehold = 175k @ 7% = 12,250 compared to the previous calculation of 300k@ 6 % = 18k


    No, I don't think that this is correct, as it completely contrary to what I have discovered, see the sources above.

    The bit from the RTE website is taken directly from the budget speech and it says all exemptions will be retained and the second quote I have there is from Annex G, which is the documented explanation of the stamp duty updates in the budget and it says: "owner-occupying purchasers of new residential property over 125m2 are liable to stamp duty on the greater of the site value or 25% of the property value (excluding VAT) at the standard rates"

    So I don't believe that anything has changed.


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