Stamp Duty for tenants - Renting

logic

If your rent is above 19050 pa, you are liable for stamp duty, usually paid by the tenants. The revenue doesn't feel its enough to just tax the landlords.

Does anyone know where I would find these stamp duty rates for tenants?

MorningStar

That is the weirdest thing I have heard of. Are you sure it's called stamp duty? What are they meant to be stamping?

logic

http://www.threshold.ie/page.asp?menu=70&page=160

Its there on the page, first time i heard of it too. The only thing there stamping is my pocket!!

MorningStar

It's to do with commercial property only

http://www.revenue.ie/services/tax_info/taxes7.htm

Victor

MorningStar wrote:

It's to do with commercial property only

http://www.revenue.ie/services/tax_info/taxes7.htm

No, residential property with rent of €19,050 or more per annum pays 1%.

Only Residential Property where the term is not exceeding 35 years or an indefinite term and rent does not exceed €19,050 per annum is exempt.

I understand its to cut down on fudging sales as using "hire purchase" type payments, all though the 1% rate is much lower.

logic

Thanks Victor.

MorningStar

Fair enough I should read my own links.

What is the deal then. 1% of what? The value of the property or the rental income? If on the value of the property do you have to get it revalued every year or is there a scale?

Who is actually liable for the money? The value is pretty low there must be a few that tip it and in the next few years more will.

logic

Its 1% of the annual rental income (once its over 1590 or so a month). So 1% of 19050 is about 190 or so. Usually the tenants are liable.

Victor

logic wrote:

Its 1% of the annual rental income (once its over 1590 or so a month). So 1% of 19050 is about 190 or so. Usually the tenants are liable.

Tenant is always liable since about 1995 unless they agree the lanlord will pay ot, in which case the Revenue still chase the tenant.

MorningStar

Cheers Victor. I am surprised it wasn't mentioned by my accountant but as I don't have to pay it I can see why. I wonder if they will remember to up the limit at some point. A 4 bed house would probably hit the limit. It must be a bit difficult for the revenue to know who is renting off who.

Andrew Duffy

I wonder if they will remember to up the limit at some point.

I doubt it. When were the stamp duty boundaries on purchase last revised? Time was when £500,000 would buy a country estate - now it buys a semi-detached house.

MorningStar

Andrew Duffy wrote:

I doubt it. When were the stamp duty boundaries on purchase last revised? Time was when £500,000 would buy a country estate - now it buys a semi-detached house.

Last year for first time buyers but I know what you mean.

Did you see the revenue threatened on the loophole I mentioned about first time buyers due to the increase becasue of the changes to the limit.

Victor

MorningStar wrote:

I wonder if they will remember to up the limit at some point.

I tink it was a orginally about €12,700 (IR£10,000) and was increase 4-5 years ago.