Stamp Duty Refund Scheme where non-residential land is subsequently developed for residential purposes.

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Presently a rate of 6% applies to the purchase or transfer of land which is non-residential. A refund may be claimed between the previous non-residential rate of 2% and the current rate of 6% in respect of land that is subsequently developed. This includes both single one-off houses as well as multi-unit developments. For example a person who purchases an agricultural site and subsequently constructs a dwelling can avail of the Scheme provided they satisfy the conditions.
S. 83 D of the Stamp Duties Consolidation Act 1999 sets out those qualifying conditions. These include for single one-off houses ,that the Deed transferring the land is executed on or after the 11th of October 2017, stamp duty is paid at the rate of 6%,the area does not exceed 1 acre, construction must commence within a period of 30 months after the date of execution of the Deed and construction must be completed within a 2 year period of the local authority acknowledging a commencement notice or 7 day notice as valid.
The Scheme is not open-ended and time limits apply. Construction must commence on or before the 31st of December 2021 and the latest day for completion of construction is the 31st of December 2023.
A refund can be applied for as soon as construction commences and there is a 4 year time limit within which to make a claim. The maximum amount of the refund is 2/3 of the amount of stamp duty paid. Information on how to process the claim is contained on the Revenue website.
There is provision for a clawback of the refund, therefore strict adherence to the conditions of the Scheme is required.

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