First Time Buyer Benefits

(See also Stamp Duty Rates)

Reduced rates of stamp duty apply to first time buyers. First time buyers buying new houses are fully exempt from stamp duty provided the structure has a floor area certificate issued by the Department for the Environment. The floor area of the property must not exceed 125 square meters (1,346 sq ft). The house must be for the purchasers own occupation for a period of five years commencing on the date of purchase.

Where the property is greater than 125 sq metres and the property is new, first time buyers can also avail of a reduction in the amount of stamp duty payable.

Stamp Duty is assessed on the greater of
a) Site price or
b) 25% of the total of the site costs and building costs (exclusive of VAT) at the appropriate reduced rate of stamp duty for a first time purchaser.

A first time buyer of a new home measuring say 150 sq metres costing 100,000 including VAT (site cost 50,000). The purchase price chargeable to stamp duty is 25% of the actual purchase price (200,000 (minus VAT @12.5%) multiplied by 25%). Therefore the stamp duty payable on this home is 23,750 x 0%=nil. No stamp duty arises as stamp duty charges only commence at 190,001 for first time buyers.

See Stamp Duty Rates for rates applicable to new houses and apartments greater than 125 sq metres taking into account the restricted consideration. At the rates from the 06/12/01 investors who purchase a new property will pay the same rate of stamp duty on that property as they would on a second hand home and these rates are laid out in the stamp duty section.

Where contracts are entered into prior to 6th December, 2001 a flat rate of 9% will apply to investor properties.

See Also:

•  Stamp Duty Rates

Other First Time Buyer Benefits :

•   First Step Mortgage
•  Mortgage Interest Relief
•  Rent a Room Tax Free