Stamp Duty query

gazzer

I am considering putting an offer in on a dormer bungalow. The house is 2 years old and the couple who built it are living in it. There are two rooms that are not finished in it (a living room and bedroom). The rooms are wired etc but there are bare brick walls in each room. All the other rooms (sitting room, kitchen etc are finished and to a very high standard). You could easily live in the house without finishing the other rooms but if I buy it I would take my time in completing the 2 rooms.

I was wondering how this affects the rate of stamp duty that I pay if I bought the house? I am not a first time buyer. I know if I bought a new build house I would pay SD on 25% of the value of the property but would this house be considered a 'new build' if it isnt fully finished?

Thanks

partyguinness

Stamp Duty will be calculated on the consideration you pay. Will you be an owner occupier or investor?

gazzer

partyguinness wrote: »

Stamp Duty will be calculated on the consideration you pay. Will you be an owner occupier or investor?

I will be an owner occupier. I was reading some Stamp Duty websites and as far as I can make out if the house is a new build and over 125sq metres than some stamp duty will be payable.

partyguinness

As an owner occupier, you will pay the full rate if the property is over 125 square metres (which I am guessing it is). I assume there will be no seperate Building Agreement and Contract for the land. If there was it would be a bit trickier to explain to you.

Up to €127,000.00 Nil

Thereafter, First €125,000.00 exempt
Next €875,000.00 @ 7%
Balance over €1,000,000.00 @ 9%

What offer will you make? I can then tell you the likely SD

gazzer

partyguinness wrote: »

As an owner occupier, you will pay the full rate if the property is over 125 square metres (which I am guessing it is). I assume there will be no seperate Building Agreement and Contract for the land. If there was it would be a bit trickier to explain to you.

Up to €127,000.00 Nil

Thereafter, First €125,000.00 exempt
Next €875,000.00 @ 7%
Balance over €1,000,000.00 @ 9%

What offer will you make? I can then tell you the likely SD

I see. I thought I might'nt have to pay stamp duty if the property was still classed as a new build as according to the stamp duty explanation on myhome.ie :

Stamp Duty Rates on New Homes:

First-time Buyers:
There is no stamp duty for first-time buyers on any new homes so long as it is your main residence and you are not purchasing the property to rent it out as an investor.

Other Buyers:
For all other owner-occupiers* the stamp duty rate on new homes depends on the floor area of the property. There is no stamp duty on new homes for owner-occupiers if the floor area is less than 125 sq metres.

*An owner-occupier is a buyer who is buying the property to live in as their sole residence.

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.[/B]

partyguinness

gazzer wrote: »

I see. I thought I might'nt have to pay stamp duty if the property was still classed as a new build as according to the stamp duty explanation on myhome.ie :

Stamp Duty Rates on New Homes:

First-time Buyers:
There is no stamp duty for first-time buyers on any new homes so long as it is your main residence and you are not purchasing the property to rent it out as an investor.

Other Buyers:
For all other owner-occupiers* the stamp duty rate on new homes depends on the floor area of the property. There is no stamp duty on new homes for owner-occupiers if the floor area is less than 125 sq metres.

*An owner-occupier is a buyer who is buying the property to live in as their sole residence.

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.[/B]

Okay but you said that you were not a first time buyer.

gazzer

partyguinness wrote: »

Okay but you said that you were not a first time buyer.

Im not, in the section that I quoted from myhome.ie it mentions that 'other buyers' pay a reduced stamp duty rate if the house is a new build and is more than 125 sq metres2.

partyguinness

Okay this is getting to too tricky to explain properly:

a. Google "sd10a"

b. The first webpage is a link to the Revenue Commissioners up to date certifcates

c. Open it up as a Word Document

d. Scroll down to Table 3.

That should answer a lot of your questions.

ronaneire

Would it not be classed as a 2 year old house, not a new build. It has 2 unfinished rooms still wouldn't class it as new IMO.

gazzer

partyguinness wrote: »

Okay this is getting to too tricky to explain properly:

a. Google "sd10a"

b. The first webpage is a link to the Revenue Commissioners up to date certifcates

c. Open it up as a Word Document

d. Scroll down to Table 3.

That should answer a lot of your questions.

Cheers. Thanks for that. I will check it out.

gazzer

ronaneire wrote: »

Would it not be classed as a 2 year old house, not a new build. It has 2 unfinished rooms still wouldn't class it as new IMO.

Yeah it probably will be classed as 2nd hand. i wasnt too sure though as the house wasnt completed.

astrofool

Its only second hand if someone has lived there before. It looks, from what you quoted, that you pay SD on 25% of the purchase price of the house or the site value, whichever is greater.