Revenue eBrief No. 94/2017

27 October 2017

New 6% rate of Stamp Duty on non-residential property - transactions eligible for 2% rate under transitional relief measures

The rate of stamp duty on certain property acquisitions was increased from 2% to 6% on 10 October 2017 (Budget night). The provisions were subsequently included in Finance Bill 2017, which was published on October 19th, but these will not become law until the Finance Bill is enacted. This increase was made subject to transitional measures for the retention of the 2% rate in cases where the property acquisition had reached an advanced stage. Revenue has now put arrangements in place for these transitional measures. 

The transitional measures apply stamp duty at a rate of 2% on instruments that are executed before 1 January 2018 where there was a contract in place before 11 October 2017 that was binding on the parties to the contract and the instrument contains a certificate to this effect.  

A person who files a stamp duty return before the enactment of the Finance Bill and who is  satisfied that the transitional measures would apply if the Finance Bill was enacted, has two options. He or she may-

  1. File a return through the e-stamping system, pay stamp duty at the rate of 6% and be issued with a stamp certificate. On enactment of the Finance Bill, the filer can then request a refund of the difference in the stamp duty paid between the 2% and 6% rates by amending the return and submitting the relevant documentation to Revenue, or  
  2. File a return through the e-stamping system and pay the stamp duty at the rate of 2%, in which case a stamp certificate will not be issued.  On enactment of the Finance Bill, Revenue will publish information on how the postponed stamp certificate can be obtained.  

Further details will be published on the Revenue website.