Stamp Duty question

Lex Luthor

I know this has been brought up before but I can't find the thread....if a house is sold with kitchen appliances (oven/hob/dish washer/fridge freezer/wash machine), can the value of these items be deducted from the overall cost when calcualting stamp duty?

On a side not, if a house is bought as a 2nd property but is only intended to be used as a holiday home and not rented, can you offest the capital acquisitions over the 8yr period against the mortgage interest or not? ie. is it treated like an investment property, tax wise ??

Andrew Duffy

Yes and no. You can write a seperate contract for the purchase of the contents at a resonable value and then pay stamp duty on the price of the property only. However, the stamp duty rate is determined by the value of the contract; your solicitor has to sign a statement that states he is unaware of any other contract related to the purchase that brings the total contract price above any of the stamp duty boundaries.

Another poster called "MorningStar" will post a message contradicting this - I suggest you talk to your solictor and see what he says.

Lex Luthor

Andrew Duffy wrote:

Yes and no. You can write a seperate contract for the purchase of the contents at a resonable value and then pay stamp duty on the price of the property only. However, the stamp duty rate is determined by the value of the contract; your solicitor has to sign a statement that states he is unaware of any other contract related to the purchase that brings the total contract price above any of the stamp duty boundaries.

Another poster called "MorningStar" will post a message contradicting this - I suggest you talk to your solictor and see what he says.

The contract price is the purchase price. Basically its a new build with all the kitchen appliances thrown in and they are probably worth 2k. Removing them from the overall cost doesn't change the purchase price ascross a SD threshold, but could save me €60...

($hit, just only worked it out there....is that all? Kill this thread):o

Andrew Duffy

If its a new build it is almost certainly stamp duty exempt... have I missed something?

Lex Luthor

Andrew Duffy wrote:

If its a new build it is almost certainly stamp duty exempt... have I missed something?

Ya, I'm not a FTB

aniascor

Didn't think you had to pay stamp duty on a new build, even if you're not a FTB? As long as the place you are buying will be your primary residence. Maybe I'm wrong.

samo

aniascor wrote:

Didn't think you had to pay stamp duty on a new build, even if you're not a FTB? As long as the place you are buying will be your primary residence. Maybe I'm wrong.

If its under 125 sqm and your an owner occupier (FTB or 2nd time buyer) then yes your right its exempt from stamp duty.

If its bigger than 125sqm then there's a smaller amount of stamp duty than the norm payable taking into account it going over the VAT/chargeable consideration threshold or the value of the site.

Lex Luthor

aniascor wrote:

As long as the place you are buying will be your primary residence. Maybe I'm wrong.

Sorry, forgot to mention...won't be primary residence

Lex Luthor

I thought you still paid SD anyway if you are not a FTB even if it is a new build??? Maybe not.

The_Conductor

Lex Luthor wrote:

On a side not, if a house is bought as a 2nd property but is only intended to be used as a holiday home and not rented, can you offest the capital acquisitions over the 8yr period against the mortgage interest or not? ie. is it treated like an investment property, tax wise ??

Normally with an investment property- capital goods for the house are depreciated by straight line depreciation against rental income before the tax due is calculated. Mortgage interest relief is an entirely different matter altogether. In short- no, you cannot write off the cost of equiping your second home against anything- as you are not renting out the house, it is not generating any income that you can write-off the costs against.

Lex Luthor

smccarrick wrote:

Normally with an investment property- capital goods for the house are depreciated by straight line depreciation against rental income before the tax due is calculated. Mortgage interest relief is an entirely different matter altogether. In short- no, you cannot write off the cost of equiping your second home against anything- as you are not renting out the house, it is not generating any income that you can write-off the costs against.

Thought as much...thanks