Single home site buyers could tap ‘stamp duty tax refund’

Single home site buyers could tap ‘stamp duty tax refund’

Many people who bought sites to build single homes from October 2017 may not be aware they could tap significant refunds on the stamp duty from Revenue, according to a legal expert.

Amanda-Jayne Comyn, a partner at law firm Philip Lee, said if the reclaim is successful that the cash is paid out almost immediately.

She said Revenue had completed reviews of the vast bulk of the 155 applications it received by March, with most applying for refunds for single houses built on the sites.

The amount of refunds which could be substantial were made available after a hike in previous budgets.

“Prior to the non-residential rate increase in Finance Act 2017, a person could acquire a site to build a house and pay stamp duty at 2% of the value of the site; a fraction of the 6% rate now applicable to the same transaction,” said Ms Comyn.

“The pre- and post-Finance Act 2017 stamp duty rate applying to the acquisition of existing residential property is 1% on the first €1m and 2% thereafter,” the lawyer said.

“The refund scheme applies where a site was acquired on or after 11 October 2017 and there is a subsequent construction of residential housing on that site.

“With sites appreciating in value over current times, the sting of the rate increase may have felt more like a slap for some residential property developers particularly in the midst of our current housing market crisis.

“The lesser-known news is that the refund scheme applies equally to individuals who acquired a single site to build a single residence as it does to property developers,” she added.

More on this topic

Business Movers: The people recently appointed to new rolesBusiness Movers: The people recently appointed to new roles

€40m public sector data centre set for Kildare€40m public sector data centre set for Kildare

Grapevine: 3Sixty in expansion mode as Irish SMEs prepare for life after BrexitGrapevine: 3Sixty in expansion mode as Irish SMEs prepare for life after Brexit

Keywords Studios eyes more acquisitions after €4m German dealKeywords Studios eyes more acquisitions after €4m German deal

More in this Section

Applegreen to retain non-core UK hotels businessApplegreen to retain non-core UK hotels business

Mainstay Medical eyeing late 2020 US commercialisation approvalMainstay Medical eyeing late 2020 US commercialisation approval

Irish Ferries among eight firms approved by UK govt to bid for Brexit freight contractsIrish Ferries among eight firms approved by UK govt to bid for Brexit freight contracts

Taoiseach vows action to prepare jobs market for automationTaoiseach vows action to prepare jobs market for automation


Lifestyle

As he launches his latest cookbook, Donal Skehan talks to Clodagh Finn about juggling his career and family, and why a heavy workload has left him with a few grey hairs.Getting back to basics with Donal Skehan

Venetia Quick, co-founder of ‘Grief Encounters’ tells Ruth O’Connor that there is no right or wrong way to grieve the death of a loved one.Grief Encounters: Podcast opening up conversation about bereavement

Once again for this week’s review I was reminded about the quality of Irish meat — and yet it seems the meat processors expect our farmers to produce it at a loss.Restaurant Review: Mister S, Camden St Upper, Dublin 2

Your guide to what's going on in the gardening world this week.Gardening notes: Your guide to what's on

More From The Irish Examiner