Stamp Duty

By John Kieran ACMA CPA
Wednesday, 1st November 2017
Filed under: Rates, Taxation, Property

THE FINANCE BILL HAS CLARIFIED THE TRANSITIONAL ARRANGEMENTS ON COMMERCIAL STAMP DUTY AS FOLLOWS

Stamp Duty rate increase on commercial property, and other property related measures. The rate of stamp duty on commercial property has been increased from 2% to 6% with effect from midnight on 10 October 2017 subject to transitional measures provided in the Finance Bill as follows: To avail of the 2% rate, purchasers must have binding contracts in place before 11 October 2017 and the instruments for the transfers must be executed before 1 January 2018. The instrument must contain a statement to this effect. It is a revenue offence where an incorrect statement is furnished. The minister announced that a stamp duty refund may be available in respect of land for development of houses under a refund scheme. He mentioned that this would be subject to developers commencing within 30 months of land purchase. We understand that this scheme will be brought forward during the committee stage of the Bill. It is not in the Bill as it stands.

THE BILL ALSO CLARIFIES THE TRANSFER OF COMMERCIAL PROPERTY (INCLUDING FARM LAND) WITHIN THE FAMILY AS FOLLOWS

Assets transferred between family members Consanguinity relief for transfers of property between certain relatives is changed from half of the normal rate of stamp duty which would otherwise apply, to a fixed rate of 1% of the market value of the property being transferred. The Bill also extends the consanguinity relief provisions for a further 3 years to 1 January 2021 and removes the age limit of 67 years for availing of the relief. This is to encourage gifts and sales of farmland to family members who do not qualify for the exemption available under the Young Trained Farmer scheme. There is an increase proposed for the threshold below which certain residential leases are chargeable to stamp duty from €30,000 to €40,000. These are leases for an indefinite term or not exceeding 35 years. Commercial lease premiums are subject to the increased stamp duty rate of 6%.

Call John Kieran regarding any stamp duty queries on:

047 84955 or 087 906 7601

or email:

john@amatino.ie