Am I entitled to exemption from stamp Duty??

I bought my first property as FTB in 04, I initially didnt pay stamp duty but had to rent it out due to work abroad! Payed stamp clawback, registered tenants, did everything by the book.
Now myself and my partner whos is a first time buyer wish to purchase our first home together.
Am I entitled to any break on stamp duty seeing as my first property was an investment not a “home”
Somebody in the bank told me I still had my FTB status which I was surprised by, I always considered I had waived my entitlement.
I have scoured the net for advice but have being unsucessful in finding any!
:question: :question: :question:

I would think that if your first purchase is an investment property then that means your FTB status is wasted.

You could always ring up and make sure

You will not be entitled to exemption as first time buyer as you have purchased a property anywhere in the world.

However partner will if partner buys on their own.

I am sure there is a way around it if you get the right tax advice…

He is a FTB if the property he purchased was never used as his PPR (and it was rented out fro 5years).

First-time buyers

A first-time buyer is defined as a person (or where there is more than one buyer, each person):

* Who has not on any previous occasion, either individually or jointly, purchased or built on his or her own behalf a house in Ireland or abroad
* **Where the property purchased is occupied by the purchaser (or a person on his or her behalf) as his or her only or principal place of residence **
* Where no rent (except under the Rent a Room Scheme) is derived from the property for up to 5 years after completion of the purchase - see 'Clawback of stamp duty relief' below

You have lost your FTB status but you could still avoid stamp duty if you buy the property in your partner’s name only. This might not be possible though if your income is being taken into account for the mortgage etc. Point to note- if you can go ahead with the property in their name alone and if at some point you decide to get married you can then transfer the property into joint ownership with no stamp duty payable.

A first time buyer is a person, (or, where there is more than one buyer, each of such persons):

  • who has not on any previous occasion, either individually or jointly, purchased or built on his/her own behalf a house (in Ireland or abroad) and
  • where the property purchased is occupied by the purchaser, or a person on his behalf, as his/her only or principal place of residence and
  • where no rent, other than rent obtained under rent a room arrangements, is derived from the property for a period of two years from the date of the purchase. This relief is subject to clawback provisions.

The definition of a first time buyer above includes the word ‘and’ and not ‘or’. Therefore anyone who has bought on any previous occasion a house will not be considered a first time buyer.

I contacted the Revenue about this previously and they confirmed that anyone who has purchased a property even as a investment is not entitled to first time buyer exemption.

You can contact the Stamp Duty office on 1890 48 25 82 to check on their interpretation of your specific circumstances.

That refers to the property being purchased, not to any property already owned i.e. you can’t claim FTB tax relief on an investment property even if you’re otherwise an FTB.

As explained above, you do not qualify unfortunately. You are however, free to purchase the property in the name of your partner. Your bank will require the mortgage to be solely in the name of your partner also. They can hold a letter of guarantee from you to cover the risk.

The main downside is, if you have any legal entitlement to any appreciation of the property in the future. If you guarantee the loan, you’ll have to cover any losses on the loan - both are cons.

Was there not also a change which made guaranteed mortgages non-FTB? I remember it affecting people who got their mortgage with the help of their parents.

You may be a FTB for purposes of Mortgage Interest Relief, but definitely not for stamp duty.

If there’s going to be an exception made for FTBs it should be done in a similar vein to a tax credit. Everyone gets, for example, a €5K stamp duty credit.

A couple can combine this on a joint purchase, so for a €300K gaff they’d pay €12,250 less the combined Stamp Duty credit of €10,000 so €2,250 would go to the Taxman.

One of the couple might be trading up from a one-bed apartment (or whatever), so the other half doesn’t lose out completely on FTB status, they’d use the remaining stamp duty credit, so it’s €5,000 in Stamp Duty credit and €7,250 to the revenue.

As for the OP he might have used his Stamp Duty credit on the investment property in '04, so he’d get the benefit of FTB status, despite buying the investment property and the family home in the “wrong” order.

It’d put an end to the nonsensical rubbish where big earners can buy gaffs for €500K plus and pay no stamp duty.

All this names on deeds and guarantor nonsense eliminated at a stroke too.

If anyone can see any flaws in this plan, feel free to comment. I feel it’s far more fair and workable than the current system.

Credit system could be the way forward, but i reckon its to complicated for the current government to get their head around. If they need to do 2 budgets a year, changing the Stamp Duty legislation could be a challange too far for them.