Mary buys a site of 1 hectare for €150,000. The deed of transfer is executed on 12 February 2018. Mary files a Stamp Duty return and pays Stamp Duty at the rate of 6% (€9,000). On 13 March 2018 she applies for planning permission to build a house on the site. Planning permission is granted on 1 May 2018. She lodges the Commencement Notice with her local authority on 15 June 2018.
The local authority acknowledges receipt of the Commencement Notice say on 20 June 2018. Mary begins building. Mary does not have to satisfy the ‘75% test’. However, the area to be occupied by the house together with the curtilage is 0.25 hectares. Mary can claim a refund in respect of the Stamp Duty paid on 0.25 hectares as soon as building commences. Mary will get a refund of €1,500 (€9,000 ÷ (0.25/1) x (2/3)).