Non-residential property

As you know, the rate of Stamp Duty on the transfer of non-residential property head of charge is increased from 6% to 7.5%.  The rate of Stamp Duty charged on the premium component of a lease of non-residential property also increased from 6% to 7.5%. 

The new 7.5% rate takes effect for conveyances or transfers and leases that are executed on or after 9 October 2019. Revenue is working on an IT development to the e-stamping system to include the new 7.5% rate. Revenue expects this development to be in place by Friday, 11 October.

Budget 2020 provides for transitional arrangements whereby Stamp Duty can be paid at the pre-Budget rate of 6% where:

• there was a binding contract in place before 9 October 2019, and
• the subsequent deed of conveyance or transfer or lease is executed before 1 January 2020, and
• the instrument contains a certificate.

The wording of the certificate is:

“It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into before 9 October 2019”.

Revenue is also working on an IT development to enable the claiming of these transitional arrangements when filing a Stamp Duty return. Revenue expects this IT development to be in place on 23 October 2019. Where possible Revenue ask filers not to file returns where these transitional arrangements apply until 23 October. Any returns meeting the criteria for transitional arrangements will still be within the 44 day timeframe for submission of returns. If it is not possible to wait until 23 October, in order to get a stamp certificate, filers must pay Stamp Duty at 7.5%. They will then need to seek a refund of the overpaid amount. They cannot claim this refund until 23 October 2019.

Section 83D refunds

Where non-residential land is purchased for residential development and Stamp Duty is paid at the new 7.5% rate, a refund of up to 11/15ths of the Stamp Duty paid may be available where certain qualifying conditions are met.   

Revenue is working on an IT development to our eRepayments system to enable refunds of Stamp Duty under the section 83D refund scheme where Stamp Duty was paid at 7.5%. Revenue expect this IT development to be in place by 23 October 2019. It will not be possible to seek refunds, where Stamp Duty was paid at the 7.5% rate, until 23 October 2019.

Revenue are currently uploading information to their website to inform people and stating that the development will be in place by 23 October.