Stamp Duty Query

pete4130

Hello,

Just a quick question regarding stamp duty seeing as there is talk of the goverment abolishing it for first tmie buyers. I've bought a 2nd hand house last November (as in both parties signed contracts) but due to delays the closing has been put off until mid July.

My question is with the backdating to April for stamp duty being abolished. Will I be exempt from paying stamp duty as the closing date is after April or will I have to pay stamp duty as the contracts were signed last November. Legally I will not have bought a house until it closes which should be the purchase date.

I've spoken to my mortgage broker who said she was unsure but would guess that we would be exempt and to check with the solicitors. The solicitors, being solicitors wouldn't say one way or another as there was nothing in writing from the goverment for them to work off.

Any help would be appreciated as I'd like to know as it could cost or save me thousands of €'s.

Thanks,

Peter.

patrickolee

Think you'll have to ask Bertie... Bertie are you reading?

DubOnHoliday

I would say its going by the closing date... so you should be alright.
I am in the same boat... and even though my Closing is mid July (15th) my solicitor is insisting that I still must give her the stamp duty and claim it back off the revenue, sounds very suss to me!

Migser

I'd say you'll be exempt from SD, but you will still have to pay it and then claim it back as the legislation hasn't actually been changed yet so your solicitor has to go by the book.

Could Bertie change his mind and then you would not be able to claim the SD back, yes but highly unlikly.

DubOnHoliday

Migser wrote:

I'd say you'll be exempt from SD, but you will still have to pay it and then claim it back as the legislation hasn't actually been changed yet so your solicitor has to go by the book.

Could Bertie change his mind and then you would not be able to claim the SD back, yes but highly unlikly.

Thats true. However the legislation is to be fully in place before the Dail breaks for the summer.... anyone know what date that happens? Because if its before the 15th of July, no way am I giving her that money. God knows when the revenue would get around to refunding it.

pete4130

Well, its good to hear that I'm not the only one in this situation. I'm sure you feel up inthe air over the whole situation like I do. I'm supposed to close on July 17th.
After some googling, I think the Dail is to break for the summer around July 5th. So hopefuylly everything will be in place by then and we'll get to save some money.
http://www.ireland.com/newspaper/breaking/2007/0615/breaking50.htm

If we have to go the route of paying it and claiming it back then so be it. It's a pain having to give it out and wait for it to come back but at least its not gone forever.

DubOnHoliday

pete4130 wrote:

Well, its good to hear that I'm not the only one in this situation. I'm sure you feel up inthe air over the whole situation like I do. I'm supposed to close on July 17th.
After some googling, I think the Dail is to break for the summer around July 5th. So hopefuylly everything will be in place by then and we'll get to save some money.
http://www.ireland.com/newspaper/breaking/2007/0615/breaking50.htm

If we have to go the route of paying it and claiming it back then so be it. It's a pain having to give it out and wait for it to come back but at least its not gone forever.

Can you remind me of the rule... Stamp duty falls due 30 days after signing or something like that? Cos we haven't signed yet, but are due to this week.

Glenbhoy

It's probable that you'll have to continue paying SD for another while yet - only in rare occasions (for example when it suits the govt cashflow wise) is legislation given immediate effect - I imagine that this sd gimmick has not yet been fully ironed out yet, thus in order to ensure loopholes are minimised they'll allow the finance act to be amended, but continue to charge stamp duty for another while and then refund it later in the year - however I could be talking ****e.

MysticalSoul

As the Contracts are signed you will have to pay the Stamp Duty I'm afraid.

pete4130

I wouldn't be too sure of that. I know the contracts are signed, but the legislation is reportedly saying that any sales that have been completed from March 31st are exempt from paying SD. This would indicate that I won't have to pay stamp duty as my sale purchase hasn't closed or been completed yet. I haven't actually bought a house until the day the sale closes and the mortgage is drawn, while the sellers haven't actually sold a house either. If I am wrong, then its an easy fix. Both parties agree to null the existing contracts and get both parties to resign.

patrickolee

I reckon you won't have to pay stamp duty. Happy days. Congrats.... now buy me a pint, mines a bass :-)

pete4130

Well, I'd be happy to buy you a pint if I don't have to pay. There is alot talk that its one way or another. I guess I'll try to find out from the solicitors tommorow, if they'll say one way or another. I'll keep you all posted.

Pete.

yankinlk

People people people! Please hop on over to www.askaboutmoney.com

I love boards.ie but this is not the place for these questions. You are not getting good advice here.

Solicitors know feck all about stamp duty. Do your own investigations about whether its due or not, when its due, and whether you even need to pay in light of the new legislation. All these questions have been asked and answered over there.

dats_right

yankinlk, I agree with you about the quality of posting on this site but what a ridiculous suggestion that solicitors don't know about Stamp Duty.

Solicitors were unable to advise regarding Stamp Duty changes until yesterday, because other than election promises there were no firm or definite proposals until the publication of yesterdays Bill.

The position is really quite strainghtforward, once the Bill is enacted and becomes law, then All first-time buyers will be exempt from Stamp Duty. It will apply to instruments executed on or after 31 March 2007 and where stamp duty has been paid in respect of such an instrument before the Bill becomes law, provision has been included to allow for a repayment of that duty.

yankinlk

you wouldn't be a solicitor would ya?

Sorry if I offended you, but a fact is a fact. In my experience - it's better for the individual to research Stamp duty costs on their own, and NOT to rely on a solicitor to be the beat all end all. Have a look around on AAM and you will see examples of incorrect advice from them all over. They are paper pushers not accountants. The same rings true of people taking advice from auctioneers.

Spend the time to make a quick call to Revenue yourself and you will find the most helpfull people in the world able to give you a better idea of what is actually due to be paid. I did it and saved a few grand of what a solicitor advised me to pay.