In January 2022, Company B purchased 10 houses for €4m and pays Stamp Duty of €400,000. In February 2022 one of the houses is designated as a cost rental dwelling. The cost of the designated property was €300,000 and the term is 40 years.
Company B is due a partial refund.
Stamp Duty paid on the designated house at 10% rate = €30,000 (€300,000 @ 10%)
Stamp Duty due at the standard rate on the 10 properties = €70,000 ((€1m x1%) + (€3m x 2%))
Stamp Duty attributable to the designated property at the standard rate = €5,250 (€70,000 x (€300,000 ÷ €4m))
The refund, using the formula A – B is calculated as follows:
€30,000 - €5,250 = €24,750