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Thinking of selling, will I have to pay Stamp Duty?

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  • 20-04-2008 7:50pm
    #1
    kelsblockh
    Registered Users Posts: 8 ✭


    Bought a two bed apartment of 750 sq meters two and a half years ago as a FTB. Has been my home since, thinking of selling, will i be liable for any SD. Any info much appreciated, including any of any revelance to my situation. Thx.


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    #2
    bren2002
    Registered Users Posts: 1,199 ✭✭✭bren2002


    As it's your PPR no you don't pay stamp duty on the sale. You will if you buy a new place.


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    #3
    kelsblockh
    Registered Users Posts: 8 ✭kelsblockh


    bren2002 wrote: »
    As it's your PPR no you don't pay stamp duty on the sale. You will if you buy a new place.

    Cheers bren. Are there any pitfalls you know of, that could effect me..
    Im quite novicy


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    #4
    bren2002
    Registered Users Posts: 1,199 ✭✭✭bren2002


    Pitfalls, depends on your circumstances.

    Check that everything is correct with your management company (not management agency), if the company is in difficulty, from residents not paying their fees, poor business management or for some other reason you may not be able to sell at all.

    You should also be prepared that the apartment is not 'worth' as much as you think it is. Anecdotal evidence suggests that house prices are already back to 2005/2006 levels and continuing to fall, with apartments being amongst the worst hit. Of course there are just too many variables to guess at your situation, is it within the canals of Dublin or 20 miles away? You may end up selling for what you paid or possibly less. Of course I wish you well in getting a good price, but what something sold for even 6 months is no longer a fair comparison for what it will go for now.


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    #5
    bren2002
    Registered Users Posts: 1,199 ✭✭✭bren2002


    BTW, 750 sq meters. That's 1 Fcuk Off apartment. Might want to rethink that size!


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    #6
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    bren2002 wrote: »
    BTW, 750 sq meters. That's 1 Fcuk Off apartment. Might want to rethink that size!

    I'm guessing- he means square feet :D


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    #7
    sarahhurray
    Closed Accounts Posts: 56 ✭✭sarahhurray


    The two basics you should know are -

    1. if you buy again you are liable for stamp duty at the owner occupier rate.

    2. You get tax relief as a first time buyer on your mortgage repayments for seven years from when you first buy. If you buy another place you will continue to get this relief. If you rent you lose the tax relief, you don't get to store up the seven years ifkwim.


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    #8
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    sarahhurray wrote: »
    2. You get tax relief as a first time buyer on your mortgage repayments for seven years from when you first buy. If you buy another place you will continue to get this relief. If you rent you lose the tax relief, you don't get to store up the seven years ifkwim.

    Tax relief for non-first-time-buyers is only worth half as much as for FTBs.
    I'll try to post a link to the exact rates here later.

    S.


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    #9
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Check with a solicitor regarding the revised provisions of the 2008 Finance Act regarding clawback of stamp duty from First Time Buyers who sell within a timeframe. Originally if you sold your property less than 5 years after purchase, you were liable to repay the stamp duty which you were exempt from, at investor rates. This was reduced to a 2 year period in the 2008 Finance Bill, with effect from the 7th of December 2007. I am not sure if this is retrospective on previous purchases- you need to check this out immediately.


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    #10
    sarahhurray
    Closed Accounts Posts: 56 ✭✭sarahhurray


    When it comes to tax relief you are classed as a first time buyer for seven years, even if you buy seven houses in that time frame. It's important to get that clear as it's a pretty significant amount of cash.

    You don't have any claw back on stamp duty when you sell your principal resident at anytime. It's only if you rent it out that you may become liable for stamp duty clawback.


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    #11
    Maximilian
    Legal Moderators, Society & Culture Moderators Posts: 5,400 Mod ✭✭✭✭Maximilian


    sarahhurray wrote: »
    1. if you buy again you are liable for stamp duty at the owner occupier rate.

    That's not entirely true. Generally, if you buy a newly built property as an owner occupier, you don't pay stamp duty. Even if its your second purchase.


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    #12
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Maximilian wrote: »
    That's not entirely true. Generally, if you buy a newly built property as an owner occupier, you don't pay stamp duty. Even if its your second purchase.

    True, once you keep under the threshold, as indeed most people do.


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    #13
    BC
    Registered Users Posts: 1,326 ✭✭✭BC


    smccarrick wrote: »
    Check with a solicitor regarding the revised provisions of the 2008 Finance Act regarding clawback of stamp duty from First Time Buyers who sell within a timeframe. Originally if you sold your property less than 5 years after purchase, you were liable to repay the stamp duty which you were exempt from, at investor rates. This was reduced to a 2 year period in the 2008 Finance Bill, with effect from the 7th of December 2007. I am not sure if this is retrospective on previous purchases- you need to check this out immediately.

    Not true.
    The 5 year penalty only applied if you rented out the property not if you sold it. Ditto for the new 2 year period.
    Details are here:
    http://www.revenue.ie/index.htm?/revguide/stampduty.htm


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    #14
    Glenbhoy
    Registered Users Posts: 1,853 ✭✭✭Glenbhoy


    BC wrote: »
    Not true.
    The 5 year penalty only applied if you rented out the property not if you sold it. Ditto for the new 2 year period.
    Details are here:
    http://www.revenue.ie/index.htm?/revguide/stampduty.htm

    That's correct, also, Sarah made the important point that mortgage interest relief applies for the first seven years of home ownership, thus you can sell, rent for a few years and then take up the remainder of the 7 yrs whenever you want (if the tax regime stays the same).


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