Stamp Duty  – first time buyers beware!

Stamp Duty – first time buyers beware!

Stampduty ClawbackSome first-time buyers are now finding it difficult to meet mortgage repayments despite the fact that repayments for most have dropped.

Due to pay cuts or job losses for some, they are left with no option but to sell up and cut their losses. Not only are many of these in negative equity right now but if they have bought in the last two years, … they also face a stamp duty clawback. One of the conditions of the stamp duty exemption for first time buyers is that you don’t sell the property for two years. Otherwise you face a clawback. Try to hang in there for two years. Maybe it’s time that Mr. Cowen and his boys reviewed the stamp duty clawback rule again?

There are 2 comments for this article
  1. Astrid at 7:10 pm

    There is no clawback if you sell the house!

    Details from Revenue quoted below:

    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. [b]A clawback does not arise if the property is sold within the two-year period.[/b] 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 HYPERLINK “http://www.revenue.ie/en/tax/stamp-duty/forms/clawba1.pdf” Receipt of Rent form.

  2. Ger at 2:00 pm

    I think the change from 5 years to 2 is very welcome. However, it’s still 2 years of debt. This must be very difficult for first timers who have just bought a place, lose their job and are then lumbered with a mortgage that they can’t afford and in negative equity. Come on Mr. Cowen. Sort this out. People are being screwed at every turn for the mistakes of the fat cats.

Leave a Reply