I am informed by the Revenue Commissioners that, as regards stamp duty, where one spouse owns a house prior to marriage and both spouses subsequently jointly purchase another house, neither spouse is entitled to the stamp duty first-time buyer relief in respect of this other house because one of the spouses has already owned a house.
However, where one spouse owns a house prior to marriage, and the other spouse (who never owned a house) subsequently purchases a house, this other spouse can claim the stamp duty first time buyer relief provided that the source of the funds for the purchase is derived from that spouse's own means which can be, or can include, an unconditional gift, or a bona fide loan evidenced in writing.
Where a spouse has received a gift or a loan (other than from his or her parents), that spouse will be precluded from claiming first time buyer relief where the donor or lender:
intends to, or does, occupy the house with the purchaser as a principal place of residence, or
there is an understanding or agreement that the house, or an interest in the house can be transferred to the donor or lender after the purchase.
A similar situation applies in the case of co-habiting couples so that married couples are not disadvantaged as compared to co-habiting couples.
I am further informed by the Revenue Commissioners that, as regards income tax, the first-time buyer mortgage interest relief applies to an individual provided that the year of claim is one of the first seven years for which relief falls to be given to that individual in respect of interest paid on qualifying loans.
Where one spouse was entitled to the first-time buyer mortgage interest relief on a loan used to purchase his or her principal private residence prior to marriage and both spouses subsequently jointly purchase and financed by a mortgage, another house which then becomes their principal private residence, the position of each spouse for each tax year is examined separately for the purposes of determining the first time buyer mortgage interest relief due to each. I think this is, perhaps, best explained by way of an example.
Ms Brown purchases her principal private residence during the 2006 tax year. She subsequently marries and purchases, jointly with her spouse (who had not previously been entitled to the first time buyer mortgage interest relief), a new principal private residence during the 2008 tax year. Ms. Brown is entitled to the first time buyer mortgage interest relief for each of the tax years 2006 to 2012 inclusive and her spouse is entitled to the first time buyer relief for each of the tax years 2008 to 2014.
A similar situation applies in the case of co-habiting couples so that married couples are not disadvantaged as compared to co-habiting couples.
