Stamp Duty FAQs

Tags: Stamp Duty, FAQ

Q: What is the effective date for the exemption from stamp duty for First Time Homeowners?

A: The effective date for the exemption from Stamp Duty for First Time Homeowners is 01.01.2019; that is, the Deed of Conveyance and Deed of Mortgage (if any) must be executed on or after 01.01.2019.

Q: What is the exemption amount for house and land?

A:

  • For First Time Homeowners the exemption is up to a maximum of $1,500,000.
  • For non-First Time Homeowners the exemption is up to a maximum of $850,000.

Q: Must the property be owner occupied to be entitled to the First Time Homeowner exemption?

A: No.

Q: If the property is purchased by more than one person, must each purchaser be a First Time Homeowner to qualify for the exemption?

A: Yes. Each joint purchaser must be a First Time Homeowner to qualify for the First Time Homeowner exemption. Where one or more of the joint purchasers are not First Time Homeowners, the exemption is limited to $850,000.

Q: If I purchased my property in 2018 or before and the Stamp Duty has not yet been paid or processed, do I qualify for the exemption if I am a First Time Home Owner?

A: No. To qualify for the First Time Homeowner exemption the Deed of Conveyance and/or Deed of Mortgage must be dated on or after 01.01.2019.

Q: Am I entitled to the First-Time Homeowner exemption if I am purchasing only residential land for the first time?

A: No. The exemption in respect of First Time Homeowners is restricted to the purchase of a house or house and land (together). However, you will be entitled to an exemption up to a maximum of $450,000 for the purchase of residential land, once the land meets certain criteria and the relevant exemption application is made.

Q: Does the Stamp Duty exemption as a First time Home Owner still allow me to claim the $25,000 allowable for Tax purposes?

A: Yes.

Q: If I already own residential land and I took a mortgage to construct a house on the land, am I entitled to any exemption?

A:

  • Yes. If you are a First Time Homeowner constructing your own home on approved lands, the mortgage deed will qualify for exemption up to a maximum of $1,500,000 where the mortgage is for the construction of that home.
  • If you are a non-First Time Homeowner constructing a residential building on approved lands, the exemption on the mortgage deed will be up to a maximum of $850,000.

Q: What happens if I decide to change or alter the use of my residential property after being granted exemption from stamp duty?

A:

  • If the property use changes to a use other than wholly or mainly for residential purposes within one year of the date of exemption, the full amount of stamp duty exempted becomes due and payable.
  • If the change of use is made after one year but within two years of the date of the exemption, one half of the exempted stamp duty becomes payable.

Please Note: The Stamp Duty Act mandates that it shall be the duty of the purchaser on whose deed the exemption was granted to inform the Board of Inland Revenue of any alteration of use of the residential property within two years of the exemption being granted. Failure to do so attracts a fine of $15,000 in addition to payment of the requisite stamp duty.