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Sunday May 20 2012




BUY SELL RENT MORTGAGES LIFE, PENSIONS & INVESTMENTS My OBG CONTACT US ABOUT US


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Tax Guide


Stamp Duty
Stamp Duty is a tax payable to the Government based on the processing of the documents that relate to buying and selling property. For stamp-duty purposes, a First Time Buyer is defined as a person who has not on any previous occasion purchased or built a home on their own behalf in Ireland or abroad. The property must be used as their principal place of residence and it cannot be rented out (unless under the rent-a-room scheme) for five years after completing the purchase.

Exemptions from Stamp Duty
  • Any property with a purchase price of less than €127,000
  • First Time Buyers
  • Any new owner-occupied property that is less than 125 square meters in size
Effective Date From 5 November 2007 the Stamp Duty Rates stated below are effective.

New Rates [With New Basis for Calculating Duty]
Under the new system there is an exemption of €125,000 with two rates of 7% and 9%. The 7% rate applies up to €1,000,000 and it is charged on the excess of the consideration over the exempt €125,000. The 9% rate applies where the consideration exceeds €1,000,000 and it is charged on the excess of the consideration over €1,000,000.

Consideration (or Aggregate Consideration) exceeds €127,000* Rate of Duty
  • First €125,000 Nil
  • Next €875,000 7%
  • Excess over €1,000,000 9%

The above is intended as a guide only and is subject to change. Please contact your solicitor for confirmation of your Stamp Duty status.

Mortgage Interest Relief at Source (TRS)
All owner-occupiers are entitled to claim tax relief from the Revenue Commissioners providing they have a qualifying mortgage on their main residence. Historically the relief was given through the tax system, but since January 1 2002 it has been granted at source. This means that the relief is built into your monthly mortgage repayment. You only need to apply for TRS once (usually at the start of your mortgage), but should your tax status change you should inform the Revenue Commissioners.

Mortgage TRS is calculated on the interest paid on a qualifying mortgage subject to certain ceilings or upper limits. Please note that the upper limits for First Time Buyers apply for the tax year in which the mortgage is drawn down plus six subsequent qualifying tax years.

OBG


Mortgage TRS can only be claimed by owner-occupiers – investors are not eligible for this tax relief. Please contact Oates Breheny Mortgage Services for further information and details on how to calculate your relief.

Mortgage Interest Relief is determined by the Department of Finance and can be subject to change.

Rent a Room Scheme
The Government introduced the Rent-a-Room scheme in 2001 and it enables owner-occupiers to rent out rooms in their property. It will allow you to earn up to €10,000 in rental income per year without being subject to tax. If you earn any more than this figure in a tax year, your entire rental income will be subject to tax. To avail of this relief ensure you include it in your end of year individual tax return.

Please note that in all tax matters relating to the purchase of property you should consult a qualified tax adviser / solicitor. The above information is intended as a guide only.
Do you need help?
Oates Breheny Mortgage Division

Tel: +353 71 919 4194 or email us