Revenue to Clamp Down on Stamp Duty Dodgers.

I only have the paper version of this. Here’s a few choice quotes.

It really looks like the amateur investors are getting caught out here. Probably trader-uppers who decided to hang on to the existing house and rent it out.

Revenue should clamp down on tax dodging landlords, I’d say they’d net quite a tidy sum. Then reinvest it in buidling a few super towers to house the masses…

Well by clamping down on abuse of FTB status, they’re probably going to net quite a few landlords anyway. You know, the people who bought a starter appt, then upgraded 3 years later and kept the original appt and rented it out without informing revenue

Looks like they are starting to dip into their rain day fund!

That kind of project would need careful planning - it’s easy to get it wrong.

You’ld want to build them a short hop from the city centre, somewhere that would be served by a future Luas line or something.

In fact, what if the government funded the project with some sort of SSIA-style Buy to Let fund? Use the current windfall to kickstart things.

Up til now investors had to buy whole apartments at a time - this way anyone could invest, one room at a time. The government or fund manager taxes at source so we avoid all the compliance confusion, and the renting class get luxury homes to live in.

I can only see wins here.

Lets imagine the scheme is very sizeable and its impact!
The losers would be current landlords and those who bought in the past few years hoping to sell on.

Lets assume 1 in 10 is non compliant …one in 10 of all homes purchased/built in the past 5 years .

Thats about 35k 'landlords ’ and that for a variety of reasons the average loss to the state is €5k …what with lots of them being one off country homes worth 200k max in 2004 etc .

Remember they gotcha for the stamp duty if you rent the property for 1 minute in the first 5 years …other than rent a room .

Thats only about €170m, a blip really. But I wonder if they can penalise you as well and add interest on top of that …maybe making the average take €8k with all that . Thats over a quarter Billion which is more like it

They could do well out of the CGT as well as unpaid VAT on rentals when they get around to those.

wonder no more…they can!

and ALWAYS do (particularly charging interest :wink: )

Are they still doing the old 1% per month compound interest gig?

So what are the rules.

If you sell up within 5 years of getting a house as a FTB then you have to pay CGT, otherwise not?

And you’re allowed do rent-a-room but not rent the whole house within the first five years?

Can anyone clarify?

Thanks
P

You can sell your FTB PPR within in 5 years with no problems.

It’s the renting out bit (other than rent a room) that triggers the tax clawbacks.

→ Or buying another house and living in it without letting the original one out (you can only have one PPR)?
→ Or living with/married to someone who claims FTB relief after the start of the relationship (when you are paying towards the cost of the mortgage in the case of co-habiting (? not sure on this, may be assumed that you are providing on the basis that tax treatment for married couples must be at least as good as that for individuals living together); whether or not you are paying anything in the case of marriage).

If it is decided that the co-occupier has “beneficial interest” then the couple lose their ftb status.

→ Or if somebody owned property abroad and returned to Ireland and claimed ftb relief. (I know quite a lot of people planning to do this in the near future.)