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Stamp Duty Claw back

  • 27-11-2010 9:08pm
    #1
    galwaygirl99
    Closed Accounts Posts: 1 ✭


    Hi I am first time poster and would really appreciate an answer to my question.

    I purchased by apartment 3 years agos and as a first time buyer did not pay stamp duty.

    After Christmas I am leaving the country for work and will be renting out my place, and I have read a lot of useful posts about Form 11/12 and declaring my potential rental income.

    My next question as I’m now renting the apartment, am I liable to pay this stamp duty?

    Thanks a million


Comments

  • #2
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The actual date you bought your apartment is very important.

    These are the Revenue rules:

    Clawback

    A clawback arises if rent is obtained from the letting of the house or apartment for a period of 5 years (2 years where the property is rented out on or after 5th December 2007) from the date of the conveyance or transfer, other than under the rent-a-room scheme (It should be noted that the stamp duty legislation does not contain any limit as to the amount of rent which can be recieved by a person in respect of furnished accomodation in part of the house). The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date of that rent is first received from the property.

    The claw-back period for instruments dated on or after 5th December 2007 in relation to the condition prohibiting the letting of the entire property, is being reduced for all three reliefs from 5 to 2 years for instruments 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.

    http://www.revenue.ie/en/tax/stamp-duty/certificates/clawback.html

    So was it before or after 5 December 2007 that you bought your apartment? If the former then there's a five year period before you are free of clawback. If it was on or after 5 December 2007 then you are already in the clear.

    By the way, it's Revenue who cannot spell "accommodation" and "received" in the quotation.


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