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Concerns property tax blunder may hit house sales

There are mixed views on whether a property tax wording blunder will stall house sales. Buyers an...
Newstalk
Newstalk

11.54 21 Nov 2013


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Concerns property tax blunder...

Concerns property tax blunder may hit house sales

Newstalk
Newstalk

11.54 21 Nov 2013


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There are mixed views on whether a property tax wording blunder will stall house sales. Buyers and sellers doing deals now are arguing over who has to pay the levy for 2014.

Those getting rid of their homes say they are not liable, while some buyers claim they are exempt from the tax for the first three years.

Solicitors say the situation is a mess because sales cannot go through until the bill is sorted.

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Sellers finalising deals now say they should not have to pay for 2014 because they will not own the house - while buyers are claiming they are exempt from the tax for the first three years so should not have to pay either.

A report in the Irish Independent claims the backlog will affect more than 4,000 house-sales in the last two months of the year.

Yesterday it was revealed that a mistake in the laws around the property tax has cost the State €3 million. Finance Minister Michael Noonan confirmed that the Revenue Commissioners are refunding the money this year to people who were actually exempt from the tax.

The law was intended to exempt first-time buyers who were purchasing a second-hand home. However a mistake means the credit applies to all people who bought a second-hand house.

The Vice-Chair of the Conveyancing Committee is Joe Thomas. He told The Pat Kenny Show here on Newstalk, hosted by Shane Coleman, that delays are emerging when it comes to closing the deal on the sale of a house.


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