FTB/stamp duty Query

seamus

OK.

If I buy a house tomorrow as an FTB, I pay stamp duty on the value of the house. If the value of that house is, say, €317,000, I pay no stamp duty.

Now let's say me and my SO are buying another house worth €634k. Both FTBs. The value of the house to each of us is €317,000 - we're not married, and for all intents and purposes are simply buying an equal share of the property.

I use the word "value of the house", because this is the terminology used in any documents I found about FTBs.

Can anyone see any flaw in my logic, or know any reason why we can't do this (i.e. pay up to €634k without stamp duty)?

chump

Flawed logic unfortunately. It'll be the big stamp duty

seamus

chump wrote:

Flawed logic unfortunately.

How?

The_Conductor

Nice try....
Irrespective that your portion of the new property is only valued at 317k- stamp duty is charged on the sale price of the house, not the constituent owners levels of ownership in the property.

Stamp duty was originally intended as a charge for registering ownership of property with the Revenue Commissioners. Originally it was not intended to be anything other than a small charge in recognition of the costs associated with the registration and storage of property titles. The monster that it has morphed into is a creation, largely of the incumbent government- which has not increased the thresholds for stamp duty in line with the increases in property prices which occurred largely in the last 10 years.

Soooo- your stamp duty is a single charge on registration of the property, and not a form of personal taxation- though it may seem like one to you (and most of the rest of us........)

seamus

I'm not arguing with you here, but I'm still looking for actual documentary evidence of this. The revenue site doesn't deal with the issue:

http://www.revenue.ie/revguide/stampduty.htm

The words "Aggregate consideration", could be taken either way.

Victor

People have tried it, but the law was even further tightened up last year.

Zambia

Your buying a house for €634k

Sounds like you can well afford the stamp ... You dont seem like a desperate saving FTB to me at that price.

seamus

That was just an example. I'm most certainly not buying a house at €634k

As you say, I don't think I'd be worrying too much about it if I had that kind of money available to me.

Zambia

Im afraid stamp is the guaranteed kicker, in property in the republic.

jdivision

You could buy a new house under 125 sq m and not pay any stamp

clarkwgriswold

Zambia232 wrote:

Im afraid stamp is the guaranteed kicker, in property in the republic.

From my quick bit of google research, stamp duty/transfer taxes/property registration taxes add 40 - 70000 euro onto the price of a 650000 property in every country in Europe that I researched. Some people seem to think its an exclusively Irish tax. Its not.
Of course its only 0-1% on properties in NI if they're not of high value. Similarly its 0% to an FTB here subject to certain conditions.

Zambia

clarkwgriswold wrote:

From my quick bit of google research, stamp duty/transfer taxes/property registration taxes add 40 - 70000 euro onto the price of a 650000 property in every country in Europe that I researched. Some people seem to think its an exclusively Irish tax. Its not.
Of course its only 0-1% on properties in NI if they're not of high value. Similarly its 0% to an FTB here subject to certain conditions.

yes here its zero under £125,000 and 1% till £250,000. After that it 3%

The queen doesnt like us paying to high a stamp.:-)

I should have been more pricise in my comparison , still remember we pay rates per month which over time builds up.