Stamp duty, the budget and the difference between contracts and closing

diego

About to buy a place but obviously we want to get whatever advantage is coming in the budget. What's the difference from a stamp duty point of view between closing and contracts - what date and when do you pay stamp duty from?

seamus

It would seem that stamp duty is calculated by the solicitor when the sale is closed. This duty is then paid to the Revenue, who stamp the deeds, which allows the deed to be registered.

Feel free to correct me if I'm wrong though.

Like the act of actually buying a home though, you're better off just going for it now and not thinking about "what if". You may not get any advantages in the budget, you may even end up paying more.

mad m

Going through same process at moment,I've read once contracts are signed etc buyer have 30+days to pay stamp duty..Im sure though if they got rid of it,sellers would want more.

Slightly OT I know,but seen today also if we were getting over €245k of a mortage we have to pay 0.1% stamp duty on this as well so an extra €250,where the hell does this go and why?....

Pines

mad m wrote:

Going through same process at moment,I've read once contracts are signed etc buyer have 30+days to pay stamp duty..Im sure though if they got rid of it,sellers would want more.

I doubt this is correct. It's usually at least 30 days to close the sale after signing the contracts, often much more. I also stand to be corrected but I think stamp duty is payable 30 days from the transaction, which is when the cheque changes hands, i.e. closing.

mad m wrote:

Slightly OT I know,but seen today also if we were getting over €245k of a mortage we have to pay 0.1% stamp duty on this as well so an extra €250,where the hell does this go and why?....

It goes to the Revenue, like all taxes. Why? Ask an economist, or maybe a philosopher, or the candidates on your doorstep next May.

mad m

Pines wrote:

It goes to the Revenue, like all taxes. Why? Ask an economist, or maybe a philosopher, or the candidates on your doorstep next May.

No need to be a smart arse about it,I was just wondering.Why should I have to pay an extra €250 on my mortage,Im already paying stamp duty on purchase of house.

Pines

mad m wrote:

No need to be a smart arse about it,I was just wondering.Why should I have to pay an extra €250 on my mortage,Im already paying stamp duty on purchase of house.

Easy now, I wasn't trying to be smart, just a little lighthearted.

You're asking why you have to pay a certain tax. Various legal documents attract stamp duty and a mortage is just one of them. If you want to get probate on a will, for example, you have to pay stamp duty too even though inheritance taxes might also apply. Asking "why" is a bit pointless, but perhaps someone else can provide an answer that makes more sense to you.

Board@Work

I am in a similar position to the OP. What date is the budget this year?

Victor

It is usually the first Wednesday of December, I think.