New house - stamp duty query

Wopp

Hi,

When buying a new house i understand the stamp duty to be calculated on the VAT exclusive price of the house. Im currently being quoted the stamp duty on the full price by the solicitor. Is this correct? Any guidance would ve greatly appreciated!

For example a 300,000 euro new house with 13.7% vat should amount to a stamp duty of 2589 euro, not 3000.

Source: http://www.revenue.ie/en/tax/stamp-duty/property.html

OfflerCrocGod

Solicitor is wrong, which is surprising but not impossible, it should be ex-VAT as you say.

Prismatic

I also was quoted inclusive of vat by my solicitor. I would have paid 1% on the full amount without questioning it until I saw this thread. In my request for a quotation I specified that it was a new build. Do you think it is a genuine mistake?

flyandrain

Same thing happened to me, my solicitor try to change 1%of purchase price, sent her a email and she amend that for me, stamp duty for new peppery should 1% of purchase price /1.135= amount due for stamp duty

Innervision

My solicitor quoted the same, got back to him saying I believed it should be 1% on the VAT exclusive price and he said until he received contracts he'd quote us the max possible just in case!

Prismatic

OK, 4 people with the same experience...
How prevalent is this? How often does it go unnoticed...

sullivk

I have been getting solicitor quotes and the last one had the stamp duty was listed at 1% of full purchase price, I'm glad I read this thread!!

Prismatic

Just received the invoice from the solicitor as we are closing and they were requesting 1% of the full price.

Pointed out the "mistake" and got an ammended invoice. No explanation, no apology. This thread saved me 500 Euro.

How many people are being ripped off and don't realise it?

Wopp

I cant believe how many people are affected!!

Emma2019

Another thing is the PRA registration fee. They've allowed online registration fees to be free for several months but every solicitor I've heard of is still charging 200 quid for it. Must chase mine again actually.