Recent Stamp Duty Changes

PUBLISHED: 12th July 2023

Some recent changes have been made in relation to certain reliefs and refund schemes which may be of interest to purchasers of residential property and to practitioners.

1. Refund of stamp duty under affordable house dwelling purchase arrangements

The provisions of Section 83 DA SDCA have been commenced with effect from 1 June 2023.  Section 83DA provides for a full refund of stamp duty (whether paid at the 1, 7.5 or 10% rate) paid on the acquisition of residential property where the property is sold within 12 months of acquisition for the purposes of an affordable dwelling purchase arrangement under the Affordable Housing Act 2021.  Further details on the operation of the refund scheme are set out in Part 7: Section 83DA TDM.

2. Repayment of stamp duty in respect of certain residential units

The provisions of Section 83DB SDCA have been commenced with effect from 1 June 2023. Section 83 DB provides for a partial refund of stamp duty paid at the higher 10% rate under Section 31E SDCA where the property is:

(a) let to a housing authority or approved housing body for social housing purposes;

(b) designated as a cost rental dwelling under the Affordable Housing Act 2021;

(c) registered as a designated centre under the Health Act 2007 which provides care in the community for people with special needs; or

(d) registered as a children’s residential centre under the Child Care Act 2021.

Further details on the operation of the refund scheme are set out in Part 7: Section 83DB TDM.

3. Cross Border Conversions, Mergers and Divisions

The European Union (Cross-Border Conversions, Mergers and Divisions) Regulations came into effect in Ireland on 26th May 2023 allowing Irish limited companies to convert into, divide into and merge with limited liability companies based in other countries in the European Economic Area.  These regulations also amend Section 87B SDCA to ensure that the stamp duty treatment of these processes are aligned.

4. Extension of certain stamp duty reliefs for farmers

Section 81 AA SDCA (Transfers of land to young trained farmers) has been extended to 31 December 2025. Further details on the operation of this relief are set out in the Stamp Duty Manual Part 81 AA.

Section 81 C SDCA (further farm consolidation relief) has been extended to 31 December 2025. Further details on the operation of this relief are set out in the Stamp Duty Manual Part 81 C.

Marco Hickey advised on competition issues.If you would like to discuss any of the above issues in further detail please contact escully@lkshields.ie.