Am I liable for Stamp Duty?

joejoem

I bought a property last year as a first time buyer for 381k. I paid 3% stamp on it (f*ck&n B$st^rd *^&&%%^!¬!!!! - Sorry!).

I am going to buy a second property (and rent out the first) in a few weeks, a new home under 125 sqm, and I intend to live in it. Am I liable to stamp duty on it because it is my second home or do I qualify for the new build exemption?

Many thanks,

Joejoe.

godtabh

joejoem wrote:

I bought a property last year as a first time buyer for 381k. I paid 3% stamp on it (f*ck&n B$st^rd *^&&%%^!¬!!!! - Sorry!).

I am going to buy a second property (and rent out the first) in a few weeks, a new home under 125 sqm, and I intend to live in it. Am I liable to stamp duty on it because it is my second home or do I qualify for the new build exemption?

Many thanks,

Joejoe.

My understanding of it all is that you dont buy stamp duty an your first home (ie first time buyer) unless it is of a certain size.

After that you do.

Check out this.

You will be paying the full rate on the entire consideration. It doesn't matter whether it's new or second hand as you are an investor. Tell me the consideration and I'll tell you the rate.

Andrew Duffy

Bad advice above. No duty is due on the new house as it is below 125 sqm and will be your PPR. However, since it is less than 5 years since you bought your first house you must pay the remainder of the duty that would have been due if you had bought it as an investor - in this case a further 3% of the original contract price.

joejoem

Andrew Duffy wrote:

Bad advice above. No duty is due on the new house as it is below 125 sqm and will be your PPR. However, since it is less than 5 years since you bought your first house you must pay the remainder of the duty that would have been due if you had bought it as an investor - in this case a further 3% of the original contract price.

This is my understanding also, as the house is new and it will be my primary residence I will not have to pay stamo on the new purchase.

Can you tell me, hypothetically, what are the chances of the revenue charging someone in my position for the remaining stamp duty on their first purchase if they did not declare it.

Andrew Duffy

Not high, but if you are found out the interest and penalties could bankrupt you. Similarly if you don't declare your rental income or deduct principal repayments from it.

joejoem

joejoem wrote:

it will be my primary residence

Apologies, mea culpa, dunno how I missed that reference in the first post. Was thinking on the basis of you being an investor and not residing in the new property.