Stamp duty for developers of residential land

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The Minister for Finance in Budget 2018 announced plans for a temporary scheme allowing for a refund of stamp duty for developers of residential land.  The relief was introduced during the stages of the Finance Bill which was signed into law by the President on Christmas Day. 

The following conditions will attach:

  • Refunds will be given for land purchased under an instrument executed on or after 11 October 2017 where the Stamp duty was paid at the rate of 6%.
  • Construction operations must commence within 30 months.
  • Applies to residential development only (i.e. used or suitable for use as a dwelling).
  • The development must be completed within 2 years of the commencement.
  • The development must cover at least 75% of the land or the floor space must be at least 75% of the land area.

The scheme is by way of a refund of stamp duty so the stamp duty is paid upfront and a refund sought once construction has commenced. 

The scheme will also apply to one-off housing/single dwelling units.  In such circumstances the 75% requirement is ignored.  However, the relief will be calculated on a the proportion of the land occupied by the dwelling. 

If, under the Building Control Act or a court order requiring construction operations to cease, there is a delay in commencement or completion then any such time delay will not be taken into account in calculating the 30 month or 2 year periods. 

The scheme will only apply to developments where the commencement notice has issued on or before 31 December 2021. 

The specifics of the scheme are quite detailed so please contact any of the tax team at Byrne Casey & Associates for any queries on the operation of the scheme. 

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