Stamp Duty

Jack Bauer 24

Hi All
I recently had to move out of my house and move home, I lost my job and got a job close to home, I rented my house out and moved part time home and the rest of the time staying in my girlfriends. I know I need to resigter for income tax purpose etc and with the tennancy board, however I came across something on the eircom.net website that said if you were stamp duty exempt but rented your house out within 5 years you have to pay the stamp, needless to say i've only had the place 3 years. I only rented it because I had to move for work, does anyone know where I stand in relation to stamp duty, i'm pretty familar with the rest of the tax issues.

Thanks

lynchie

revenue.ie wrote:

A clawback arises if rent is obtained from the letting of the house, other than under the stamp duty rent-a-room provisions, in the two year period from the date of purchase. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property. A clawback does not arise if the property is sold within the two year period. Any person who derives rent, other than under the stamp duty rent-a-room provisions, from the property within the 2 year period must inform Revenue within 6 months after receipt of the rent by completing the Receipt of Rent form - (http://www.revenue.ie/forms/clawba1.pdf)

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 reduceds from five years to two years for deeds executed on or after 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.

The fact you have had it three years suggests your deeds were executed prior to Dec 07 therefore you will be liable to clawback. See Here for more info

Jack Bauer 24

"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."

this suggests that if I rented the house out after 5 December 2007 that a clawback will not be required if the house is in third, fourth or fifth year of ownership. I rented the house out last year. If I read this correctly then i'm ok and would not face a clawback.........would you agree?

Xiney

You really should get professional advice on this, OP.

Also, if you have not yet registered for the PRTB within 30 days of the commencement of a tenancy, you are subject to late charges.