MNP DAC buys a 1-hectare site on which it plans to build 20 houses in two phases. The deed of transfer is executed on 11 December 2017.
MNP DAC files a Stamp Duty return and pays Stamp Duty at the rate of 6%. The Stamp Duty paid is €60,000.
On 13 January 2018 MNP DAC applies for planning permission to build 20 houses on the site. Planning permission is granted on 15 May 2018.
MNP DAC lodges its Commencement Notice for Phase 1 with its Local Authority on 14 June 2018.
The Commencement Notice for Phase 1 covers an area of 0.4 hectares. Phase 1 will meet the footprint test.
The Local Authority acknowledges the Commencement Notice as valid on 24 June 2018.
MNP DAC begins building Phase 1. MNP DAC can claim a refund in respect of the Stamp Duty paid on 0.4 hectares as soon as building commences.
MNP DAC will get a refund of €16,000 (€60,000 ÷ (0. 4/1) x (2/3)).
Phase 2 (covering 0.6 hectares) may also meet the relevant ‘75% test’. If it does, MNP DAC may wait until Phase 2 has commenced to apply for a refund in respect of both phases.