Development land sales escape stamp duty due to downturn fears

CHARGING full stamp duty on development land sales in 2006 would have raised extra revenue of about €251 million, according to a report commissioned by the government.

However, the tax is still not being levied because it could exacerbate the property market downturn.

In the report, it was assumed that 40% of land transactions in the annual development land market of €7 to €8 billion involved license agreements and other such arrangements used when land is purchased for development without conveyance or transfer. Section 110 of the Finance Act 2007 made provision for a stamp duty charge on such deals.