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Stamp Duty-help needed!

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  • 02-11-2005 11:12am
    #1
    smurfbaby
    Closed Accounts Posts: 128 ✭✭


    Ok maybe I am a bit slow but Im still trying to get my head around the various stamp duty rates. Ive just been looking at them on the revenue website.
    My boyfriend and I are looking to buy a house together. I am a first time buyer, he is not. So I imagine we are immediately exempt from the lower rates of stamp duty.
    However there is a section on the website which deals with new apartments and houses. It says that if the house is under 125m2 and the buyer is an owner occupier, they are exempt from stamp duty, whether they are first time buyers or not. Is this true or have I misunderstood something?
    If it is true, I think our best move would be to buy a new development under the 125m2 mark. We are thinking of spending up to €400,000, and if we buy a 2nd hand home we would be paying a whopping €30,000 stamp duty!
    Any advice would be much appreciated, before I get too excited about the prospect of not paying stamp duty! Has anyone else had stamp duty influence the type of property they eventually bought?


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    #2
    Andrew Duffy
    Closed Accounts Posts: 540 ✭✭✭Andrew Duffy


    Most definitely! I'm in the process of buying a new-build at the moment because raising a loan against SSIAs to pay stamp duty was going to be awkward.
    The situation for new properties is that if they have a floor area certificate (i.e., are less than 125 sqm) they are exempt for any owner-occupier, first time buyer or not. Note that if you rent the property out within 5 (?) years there is a full stamp duty clawback.
    Larger properties are stampable on the chargable consideration, which is the greater of the site price or one quarter of the total price, both ex-VAT. Since this can often be less than the exemption threshold of €127K you'll often see very large houses advertised as being stamp-duty exempt.


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