Stamp Duty, Capital Acquisitions Tax, Capital Gains Tax

STAMP DUTY

Residential Property

Under the residential stamp duty system, the first €125,000.00 is exempt. Amounts up to €875,000.00 will be charged at 7% (on the amount over €125,000.00). Where the property exceeds €875,000.00 the amount in excess of €875,000.00 will be charged at 9%.

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

*To fully preserve the existing exemption, transactions, where the consideration (or aggregate consideration) does not exceed €127,000.00 are exempt from stamp duty.

First time buyers and in certain circumstances owner occupiers, are exempt from Stamp Duty. There is a 2 year rule, which requires a full claw back of the stamp duty exemption where the owner occupier moves out and lets the property.

The Rent a Room Scheme however, allows a person, in certain circumstances, to rent out a room or rooms in his/her principal private residence without triggering a claw back of the first time buyer or owner occupier stamp duty relief. The amount of rent which can be received exempt from Income Tax under the Rent a Room Scheme is €;10,000.00.

Non-Residential Property

The rates of stamp duty for non-residential property were changed somewhat in the 2008 budget and are now as follows:

Aggregate Consideration	Rate of Duty
Not exceeding €10,000	Exempt
€10,001-€20,000	1%
€20,001-€30,000	2%
€30,001-€40,000	3%
€40,001-€70,000	4%
€70,001-€80,000	5%
Over €80,000	6%

Transfer of a Site from Parent to Child

The Site to Child relief from Stamp Duty and Capital Gains Tax provides an exemption under both taxes on sites transferred by a parent to a child for the purpose of constructing the child's principal private residence where the market value of the site does not exceed €500,000.00 and the area of the site does not exceed 0.404 hectares (1 acre). Such transfers may also have Capital Acquisitions Tax implications(see below)

Capital Acquisitions Tax Payable by a Child on Gifts/Inheritances from a Parent

The current threshold for Capital Acquisitions Tax in relation to all gifts or inheritances from a parent to a child is €434,000.00. When this threshold has been exceeded Capital Acquisitions Tax is payable at a rate of 25% on the balance.

Capital Gains Tax

Capital Gains Tax is currently 25%.

Synopsis by Una Barrett

Full details of up to date Stamp Duty Rates, Capital Acquisition Tax, Capital Gains Tax, personal tax rates, business tax rates, PAYE information etc can be viewed in full on; www.revenue.ie