Stamp Duty Question

*Dudette*

Hi All,

I am in the process of trying to sell my house. It was a new house when I bought it and I was also a first time buyer.

Someone told me recently that if I sell the house within the first 2 years of buying it that I am liable for Stamp Duty. Is this correct?

Any information is appreciated.

bleary

No no stamp duty due,only if you rent it out within 2 years (unless its through the rent a room scheme)

*Dudette*

Thanks a million Bleary! I was starting to panic........

tHE vAGGABOND

does the 2 years [and other stamp duty changes] not depend when you bought? how long have you owned it?

The_Conductor

tHE vAGGABOND wrote:

does the 2 years [and other stamp duty changes] not depend when you bought? how long have you owned it?

Yes it does. You could not rent-out a property that you bought as a FTB, without incurring a stampduty "clawback" for a period of 5 years from date of stamping of the deeds. This was reduced to 2 years for deeds stamped from the 5th of December 2007. This "clawback" only relates to the renting of the property- the owner is perfectly free to sell the property at any stage without this impacting on their original stamp duty paid (or not paid if exempt). They will however have exhausted their status as a FTB, and will be treated thus for any subsequent purchase(s).

Fruiti

smccarrick - i was wondering about this and had thought the same as you re documents stamped before 5 Dec 2007 but I've just seen this below on the revenue website and the final sentence indicates that even for documents executed before 5 dec - the clawback period is still 2 years assuming the house isn't rented out until after 5 dec 2007?


Prior to 5 December 2007, the period where no rent could be obtained was five years. Under the Finance Act 2008, this period has been reduced from 5 years to 2 years for deeds executed on or after the 5 December 2007.

For instruments executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on or after 5 December 2007, it will not involve a clawback of the relief where this occurs in the third, fourth or fifth year of ownership.

PS Sorry if my qs is off topic!

The_Conductor

It does appear to retrospectively apply the 2 year rule to previous purchases regarding renting them out- thanks for drawing it to my attention.