Stamp Duty Summary and FAQ

Edited by Brendan

From the summary of Budget Measure

A simplified system, incorporating an exemption of €125,000 with 2 progressive rates instead of the existing 6 rate bands, is being introduced with immediate effect.

Transactions not exceeding the €125,000 exemption level will not be liable to Stamp Duty.

For amounts above this €125,000 exemption level, but not exceeding €1 million, Stamp Duty will be charged at 7% on the excess over €125,000.

Where the property exceeds €1 million, the part in excess of €1 million will be charged at 9% with the remainder between €125,000 and €1 million subject to a 7% charge.

In addition, properties with a value in excess of €125,000 but not exceeding €127,000 will not be liable for stamp duty.

This change will take effect in respect of instruments which are required to be presented to the Revenue Commissioners for stamping no later than 5 December 2007. Instruments which are executed in the 30 days prior to 5 December 2007 will therefore benefit from this change.

Current exemptions in relation to first time buyers and buyers of new homes will continue to apply.

Re: Stamp Duty Changes

FAQ - Compiled by Brendan (corrections welcome)

When does it apply?
On any deeds executed i.e. sales closed "on or after" 5th November 2007

Does it apply to residential investment property?
Yes.

Does it apply to first time buyers?
No, they are still exempt

Does it apply to new houses?
No, new owner occupied houses are still exempt if they are under 125sq metres.

Does it apply to sites?
No. Unless it there is a building contract as part of the agreement to purchase the site.

Summary of rates
Consideration
0% on first €125,000
7% on next €875,000
9% on balance

(To fully preserve the existing exemption transactions up to 127,000 will be exempt)

Example 1 - house costing €625k

125k@0%
500k@7% = €35k

Example 2 - House costing €1.5m

125k@ 0%
876k@ 7% =€61,250
500k@9% = €45,000
Total €106,250 ( was €135,000)

Re: Stamp Duty Changes

http://www.budget.gov.ie/2008/downloads/AnnexG.pdf

Other owner-occupying purchasers of new residential property over 125m2 are liable to stamp duty on the greater of the site value or 25% of the property value (excluding VAT)
at the standard rates, thresholds and exemption.

Residential property is defined as a building or part of a building which at
the date the deed is signed was used or was suitable for use as a dwelling.

Hi
Has there being any change on stamp duty for site purchases? Looking at some now and thinking about buying but want to know the story with the stamp duty !

THANKS

Here's a Summary of the Stamp Duty changes for a range of Residential House Prices
My Biggest issue with Stamp Duty, is the manner in which it is applied to the family who wish to move to a similar house at a similar price (for a new job, reduce commute, closer to relatives and other such).
These people get penalised through Stamp Duty, but the social fabric is penalised also, as it forces these people into a situation where they have to commute further; not take up that job and reduce labour force mobility; not provide as much support to relatives as they'd like, etc.

So why can't they implement something to meet these social concerns with the current stamp duty method?

Brendan said:

Thanks Ramble

You are right and I have corrected it. Do I understand it correctly. I presume that "deeds executed" is the same as closing?

Click to expand...

I wonder-I thought that deeds did not have to be sent for 'stamping' for up to 30 days after closing (but in practice the purchaser must pay over the stamp duty on closing). I'm sure one of our solicitor members can clarify.

A friend of mine who works in the legal profession said that she heard that
the new stamp duty relief was only available on deeds pre December 5th if the deed hadn't yet been presented to Revenue for stamping. In effect it means that they would penalise people for being efficient.
Does anyone know if there is any truth behind that? She got it from a law clerk who works in the stamping detpartment of their firm.

Nancy1 said:

A friend of mine who works in the legal profession said that she heard that
the new stamp duty relief was only available on deeds pre December 5th if the deed hadn't yet been presented to Revenue for stamping. In effect it means that they would penalise people for being efficient.
Does anyone know if there is any truth behind that? She got it from a law clerk who works in the stamping detpartment of their firm.

Click to expand...

Deeds need to be presented to Revenue for stamping within 30 days of closing/execution.

So:

The system applies to instruments executed on or after 5 November 2007 and Revenue will, on an administrative basis until the enactment of the Finance Act 2008, give immediate effect to these changes.


See here for details and link to [broken link removed] for claiming refunds

Brian Cowen said on the Radio this morning that anyone who has already paid the stamp duty on deeds executed since 5 November, won't be getting a refund.

But this conflicts with the Revenue website:

Refunds

As the new system applies to instruments executed on or after 5 November 2007, a repayment of stamp duty will be made by Revenue where the instrument has been stamped with a greater amount than the stamp duty now chargeable under the new system. The amount of the repayment will be equal to the difference between the stamp duty paid and any lesser amount now chargeable by reference to the new system.
Claims for repayment should be made by completing the form attached at Appendix 1 [broken link removed] (PDF, 33KB) and forwarding it, together with the original stamped instrument, to one of the Revenue Offices listed below.

If sites are exempt from the new stamp duty bands then at what rate will the stamp duty be calculated on sites taht are sold subject to planning permission.

Regards

Brendan said:

Brian Cowen said on the Radio this morning that anyone who has already paid the stamp duty on deeds executed since 5 November, won't be getting a refund.

But this conflicts with the Revenue website:

Refunds

As the new system applies to instruments executed on or after 5 November 2007, a repayment of stamp duty will be made by Revenue where the instrument has been stamped with a greater amount than the stamp duty now chargeable under the new system. The amount of the repayment will be equal to the difference between the stamp duty paid and any lesser amount now chargeable by reference to the new system.
Claims for repayment should be made by completing the form attached at Appendix 1 [broken link removed] (PDF, 33KB) and forwarding it, together with the original stamped instrument, to one of the Revenue Offices listed below.

Click to expand...

Why would he say that when it's all there in black & white on the revenue website that you can get a refund.

My purchase closed on Nov 12th & was stamped on Nov 16th so according to the website we're entitled to money back.

What radio show was this? It might be available to download.

I just rang the Dublin stamping office on LoCall 1890 48 25 82 & was told that I am entitled to a refund.

Stamp Duty for non-residential property (including sites)

Aggregate Consideration Rate of Duty
Up to €10,000 Exempt
€10,001 to €20,000 1%
€20,001 to €30,000 2%
€30,001 to €40,000 3%
€40,001 to €70,000 4%
€70,001 to €80,000 5%
€80,001 to €100,000 6%
€100,001 to €120,000 7%
€120,001 to€150,000 8%
Over €150,000 9%

Hi Nige,

If a builder sells a site with full planning permission on it... Would or could it then be possible to avail of a reduced rate if a building agreement is also included in the transaction?

Yes. The rules for new houses will then apply to the entire consideration.

Thank you and if per say that said builder did not actually end up building the house (which might be the case in this scenario) does that change things?

There definitely will be a house built on the site in question and it is genuinely a builder selling it as its a once off and not an easy area for them to build in.

You would have to repay the stamp duty saved and potentially suffer interest and charges.

Don't risk it.

No chance of that... too honest I am afraid..

Thanks a million for the clarification though Nige!

We are trying to keep this thread to the rules of Stamp Duty.

We don't want a lot of irrelevant and duplicate posts.

Please stop repeating questions about sites. It is covered in the FAQ

The stamp duty calculation is very easy, please work it out for yourself using the information supplied.

Brendan