Stamp Duty

monseiur

Hi all,
Perhaps some one on here could advise on the following (apologies if it's in the wrong tread)
Basically I'm acting for my sister who's currently in the US.
She's intrested in buying a semi derelict house and a plot of land being sold by an auctioneer.
House was built in 1920's and in very bad state of repair, needs to be totally gutted, new roof, chimmney stack rebuilt etc. etc. Hasn't been lived in for over 35 years. The previous owner had to abandond it and move into rented accommodation.
The plot of land is seperate from house they'r 1Km apart. Seller wants to sell both house & land together. The land is a narrow strip of swamp/marshland and has no agriulture value and will never sell on it's own hence the reason for selling it with the house.
So my query is regarding the stamp duty to be paid.
Auctioneer says it's 1% of the total sale price.
Solicitor says it's 7.5% of total sale price.
And to complicate matters further I have been told elsewhere that the stamp duty on the plot or land will be 1% and 7.5% on the house.
Thanks

ifeelstupid

monseiur wrote: »

Hi all,
Perhaps some one on here could advise on the following (apologies if it's in the wrong tread)
Basically I'm acting for my sister who's currently in the US.
She's intrested in buying a semi derelict house and a plot of land being sold by an auctioneer.
House was built in 1920's and in very bad state of repair, needs to be totally gutted, new roof, chimmney stack rebuilt etc. etc. Hasn't been lived in for over 35 years. The previous owner had to abandond it and move into rented accommodation.
The plot of land is seperate from house they'r 1Km apart. Seller wants to sell both house & land together. The land is a narrow strip of swamp/marshland and has no agriulture value and will never sell on it's own hence the reason for selling it with the house.
So my query is regarding the stamp duty to be paid.
Auctioneer says it's 1% of the total sale price.
Solicitor says it's 7.5% of total sale price.
And to complicate matters further I have been told elsewhere that the stamp duty on the plot or land will be 1% and 7.5% on the house.
Thanks

As far as i am aware, stamp duty on the house will be 1% up to a value of €1m. Stamp duty on the separate plot of land will be 7%
More info here https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html

chops018

https://www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/t-pre-self-assessment-stamp-duty-manual.pdf

Sale price can be apportioned to cater for any non-residential land. Auctioneer can give this apportionment valuation.

monseiur

ifeelstupid wrote: »

As far as i am aware, stamp duty on the house will be 1% up to a value of €1m. Stamp duty on the separate plot of land will be 7%
More info here https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html

Thanks for the prompt reply 'ifeelstupid'
I think I can see now what's causing the confusion.
It seems that the stamp duty on non residental property is 7.5% Can a semi derelict house be classified as non residental ? If it's not habitable I guess that could be argued ! I was of the opinion that non residental implies factory, garage, farm building etc. ?

chops018

monseiur wrote: »

Thanks for the prompt reply 'ifeelstupid'
I think I can see now what's causing the confusion.
It seems that the stamp duty on non residental property is 7.5% Can a semi derelict house be classified as non residental ? If it's not habitable I guess that could be argued ! I was of the opinion that non residental implies factory, garage, farm building etc. ?

Look at page 6 of the link I posted. It tells you what is defined as residential. This document is from the Revenue, so this is the one to follow. Stamp duty is self assessed tax so you've to (or rather your solicitor has to) do their own assessment of it. I'd go with your solicitors advice on it. It is their professional indemnity insurance on the line if their assessment is not correct.