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Residential Development Stamp Duty Refund Scheme

  1. Overview
  2. Qualifying conditions for all claimants
  3. How can you claim?
  4. When can you claim?
  5. How much can you claim?
  6. Building work
  7. Percentage tests

How much can you claim?

For both single and multi-unit dwellings, the maximum amount of refund you can claim is:

  • eleven-fifteenths if you paid Stamp Duty at the rate of 7.5% (for deeds executed on, or after, 9 October 2019)
  • and
  • two-thirds if you paid Stamp Duty at the rate of 6% (for deeds executed prior to 9 October 2019)

The amount of refund is calculated using the formula:

  • A x B x (11/15)
  • or
  • A x B x (2/3)

where:

  • A is the amount of Stamp Duty paid
  • and
  • B is the area of land being claimed. This is expressed as a fraction where the total area is not being claimed. For further information, please see the examples below.

A refund is only claimed on the area of land covered by the Commencement Notice.

For single dwelling units, you can claim the area of the house and curtilage up to 0.4047 hectares (1 acre). The curtilage that exceeds 0.4047ha must be excluded from your claim. The curtilage does not include the property. The curtilage is the area around the house such as gardens, paths and driveways. Please see Example 2.

For multi-unit dwellings, a refund may still be claimed on an area of land that includes non-residential buildings. The Commencement Notice must include residential dwellings and meet the 75% rule to qualify for a refund. The 75% rule applies to the residential units only. The non-residential buildings cannot be used when calculating the footprint or gross floor space. Their presence is incidental. Please see Example 4.

  • Example 1

    Mary buys a site of 0.42 hectares for €100,000. The deed of transfer is executed on 12 February 2021. Mary files a Stamp Duty Return and pays Stamp Duty at the rate of 7.5% (€7,500).

    On 13 March 2021, she applies for planning permission to build a house on the site. Planning permission is granted on 1 May 2021. She lodges the Commencement Notice with her Local Authority on 15 June 2021. The area of land covered by the Commencement Notice is 0.42 hectares.

    The Local Authority acknowledges the Commencement Notice as valid on 20 June 2021. Mary begins building.

    Mary does not have to satisfy the ‘75% test’ as the house is a single dwelling unit. The house occupies an area of 0.02 hectares and curtilage occupies an area of 0.4 hectares. Mary can claim a refund as soon as building commences. Mary will get a refund of €5,500 (€7,500 x (0.42/0.42) x (11/15)).

  • Example 2

    Rory buys a site of 0.06 hectare for €160,000. The deed of transfer is executed on 12 February 2021. Rory files a Stamp Duty Return and pays Stamp Duty at the rate of 7.5% (€12,000).

    On 13 March 2021, he applies for planning permission to build a house on the site. Planning permission is granted on 1 May 2021. He lodges the Commencement Notice with his Local Authority on 15 June 2021. The area of land covered by the Commencement Notice is 0.025 hectares.

    The Local Authority acknowledges the Commencement Notice as valid on 20 June 2021. Rory begins building. 

    Rory does not have to satisfy the ‘75% test’ as the house is a single dwelling unit. The house occupies  an area of 0.015  and curtilage occupies an area of 0.010 hectares. Rory can only claim a refund in respect of the Stamp Duty paid on 0.025 hectares as soon as building commences.

    Rory will get a refund of €3,667 (€12,000 x (0.025/0.06) x (11/15)).

  • Example 3

    MNP DAC buys a 1 hectare site for €1,000,000 on which it plans to build 20 houses in two phases. The deed of transfer is executed on 11 December 2020.

    MNP DAC files a Stamp Duty Return and pays Stamp Duty at the rate of 7.5%. The Stamp Duty paid is €75,000.

    On 13 January 2021, MNP DAC applies for planning permission to build 20 houses on the site. Planning permission is granted on 15 May 2021.

    MNP DAC lodge a Commencement Notice for Phase 1 with its Local Authority on 14 June 2021.

    The Commencement Notice for Phase 1 covers an area of 0.4 hectares. Phase 1 will meet the '75% test'.

    The Local Authority acknowledges the Commencement Notice as valid on 24 June 2021.

    MNP DAC begins building Phase 1 on 3 July. MNP DAC can claim a refund in respect of the Stamp Duty paid on 0.4 hectares once building work commences.

    MNP DAC will get a refund of €22,000 (€75,000 x (0. 4/1) x (11/15)).

    MNP DAC lodge a Commencement Notice for Phase 2 with its Local Authority on 10 October 2021.

    The Commencement Notice for Phase 2 covers an area of 0.6 hectares. Phase 2 also meet the ‘75% test’. 

    The Local Authority acknowledges the Commencement Notice as valid on 20 October 2021.

    MNP DAC begin building Phase 2 on 3 November 2021. MNP DAC can claim a refund in respect of the Stamp Duty paid on 0.6 hectares once building work commences.

    MNP DAC will get an additional refund of €33,000 (€75,000 x (0.6/1) x (11/15)).

  • Example 4

    XYZ DAC buys a 1-hectare site for €1,000,000. It plans to build 50 apartments, a shop, creche and offices in two phases. The deed of transfer is executed on 11 February 2018. XYZ DAC files a Stamp Duty Return and pays Stamp Duty at the rate of 6%. The Stamp Duty paid is €60,000

    On 13 March 2018, XYZ DAC applies for planning permission to build 50 apartments and non-residential buildings on the site. Planning permission is granted on 23 May 2018.

    XYZ DAC lodges a Commencement Notice for Phase 1 with its Local Authority on 14 June 2018. The Commencement Notice for Phase 1 includes 50 apartments and a shop and covers an area of 0.5 hectares. Phase 1 meets the '75% test'.

    The Local Authority acknowledges the Commencement Notice as valid on 24 June 2018. XYZ DAC begins building. XYZ DAC can claim a refund in respect of 0.5 hectares as soon as building commences.

    XYZ DAC will get a refund of €20,000 (€60,000 x (0.5/1) x (2/3)).

    XYZ DAC lodge a Commencement Notice for Phase 2 with its Local Authority on 25 October 2018. The Commencement Notice for Phase 2 covers the creche and offices.

    The Local Authority acknowledges the Commencement Notice as valid on 28 October 2018.

    XYZ DAC begin building Phase 2 on 3 November 2018. The Commencement Notice for Phase 2 does not cover any relevant residential units. XYZ DAC cannot claim a refund on this portion of land.

  • Example 5

    ABC Ltd. buys a 1 hectare site for €1,000,000. It plans to build 60 houses in three phases. The deed of transfer is executed on 15 November 2020.

    ABC Ltd. files a Stamp Duty Return and pays Stamp Duty at the rate of 7.5%. The Stamp Duty paid is €75,000

    On 15 December 2020, ABC Ltd. applies for planning permission to build 60 houses on the site. Planning permission is granted on 15 January 2021.

    ABC Ltd. lodges a Commencement Notice for Phase 1 with its Local Authority on 14 February 2021. The Commencement Notice for Phase 1 covers an area of 0.4 hectares and the construction of five dwelling units. Phase 1 does not meet the '75% test'.

    The Local Authority acknowledges the Commencement Notice as valid on 24 February 2021. ABC Ltd. begins building Phase 1 on 3 March 2021. ABC Ltd. cannot claim a refund as soon as building commences as the '75% test' was not met. Construction on the entire site must commence and the '75% test' must be met before claiming for Phase 1.

    XYZ DAC lodge a Commencement Notice for Phase 2 with its Local Authority on 10 October 2021. The Commencement Notice for Phase 2 covers an area of 0.3 hectares and the construction of 35 dwelling units. Phase 2 meets the '75% test'.

    The Local Authority acknowledges the Commencement Notice as valid on 20 October 2021.

    ABC Ltd. begins building Phase 2 on 3 November 2021. They can claim a refund in respect of the Stamp Duty paid on Phase 2 as soon as building commences. They cannot include Phase 1 as construction has not commenced on the entire development.

    ABC Ltd. will get a refund of €16,500 (€75,000 x (0. 3/1) x (11/15)).

    ABC Ltd. lodges its Commencement Notice for Phase 3 with its Local Authority on 8 March 2022.

    The Commencement Notice for Phase 3 covers an area of 0.3 hectares and the construction of 20 dwelling units. Phase 3 meets the ‘75% test’.

    The Local Authority acknowledges the Commencement Notice as valid on 20 March 2022.

    ABC Ltd. begins building Phase 3 on 21 March. The ‘75% test’ over the entire site is met. ABC Ltd. can claim a refund on Phase 1 and Phase 3 as soon as building commences.

    ABC Ltd. will get a refund of €38,500 (€75,000 x (0. 7/1) x (11/15)).

Next: Building work

Published: 23 September 2024 Print this page

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