Residential Development Stamp Duty Refund Scheme

Qualifying conditions for all claimants

To qualify for the 83D refund, you must meet a number of conditions. The conditions include the following:

• you must have filed a Stamp Duty Return and paid the duty in full at the non-residential rate[1]
• you must have purchased the non-residential site on, or after, 11 October 2017
• a stamp certificate has issued
• you are using the land for residential development, either multi-unit development or single dwelling
• a valid commencement notice or 7-day valid notice issues within 30 months of the date land transfers to you.[2] A Commencement Notice is issued by the relevant Building Authority (for example, local County Council).[3]
• building work must commence within 30 months of the date a valid Commencement Notice issues to you
• you complete the building work within 30 months of the Commencement Notice. The timeline for completion was 24 months, however this was extended to 30 months by the Finance Act 2021.
• for multi-unit developments (MUD) at least 75% of the footprint or gross floor space must be covered with residential units. For single dwelling units (SDU) curtilage does not exceed 0.4047 hectares (75% rule does not apply to SDU).

Phasing of multi-unit developments

When completing the residential development on a phased basis, there if often a separate Commencement Notice for each phase. Construction work on the site must commence within 30 months of the first Commencement Notice. Work on each phase should be completed within 30 months of the Commencement Notice relating to that phase.

As work commences on a phase, you can claim for that phase, once the phase satisfies the 75% rule.

Where a phase does not meet the 75% rule, you cannot make a claim on that phase when work commences. You can claim once work commences on all phases and you meet the 75% rule on the entire development. For further inforamtion, please see Percentage Test.

You must declare that the dwelling units will occupy at least 75% of the residential development when complete. You must submit a signed declaration in the Revenue online eRepayments system when making your claim. You must also 'tick' the declaration in the Revenue online eRepayments system when making your claim.

Clawback

You will have to repay the Stamp Duty refund if:

• you claimed a refund that you are not entitled to
• you did not complete the building work within the specified period
• you do not meet the relevant '75% test' on completion.

[1] An instrument is a written document or deed. For instruments executed on, or after, 9 October 2019, you pay Stamp Duty at the non-residential rate of 7.5%. For instruments executed before 9 October 2019, you pay Stamp Duty at the non-residential rate of 6%.

[2] A Commencement Notice includes a 7-Day Notice. The purpose of a Commencement Notice is to notify the Building Control Authority that you intend carrying out building works. This applies where you intend making material changes of use to a building where the building regulations apply.

[3] If you are converting a building from non-residential to residential, a Commencement Notice may not issue. However, you may be able to claim a refund under this scheme when building work commences. You should contact the National Stamp Duty Office (NSDO) before you make your claim.

Next: How can you claim?