Budget 2011: Stamp Duty Changes

In yesterdays budget Stamp Duty on residential property has been completely reformed and simplified. Stamp duty has been reduced to a flat rate of 1% on property values up to €1 million and 2% on any amounts over €1 million. There will no longer be a distinction between new versus second hand properties or first time and non-first time buyers. While this is good news for potential property buyers the new rates are a bit of a sting for those who paid the full whack of 9% in the height of the boom.

• First time buyer relief
• Exemption for new houses under 125 sq m in size
• Relief on new houses over 125 sq m in size
• Consanguinity relief for residential property transfers
• Exemption for residential property transfers valued under €127,000
• Relief if transferring / selling a site or building from parent to child

There are no changes to the commercial property stamp duty position, which is largely at a rate of 6%. Stamp duty on land remains unchanged.
Ah, I'm in the middle of buying a property...Can I pay the new rate?
If you are currently in the middle of a transaction and have not yet paid Stamp Duty at 7% then the new rate of Stamp Duty at 1% should be applicable. The new Stamp Duty rates will apply to property transfers on or after December 8th. However, it was also said yesterday that provisions will be put in place to ensure that anyone who has entered into a binding contract to purchase a house before December 8th, and who completes the transfer of that property before July 1st, 2011 will not lose out. However be sure to check everything over with your Solicitor.

• Download Stamp Duty Rate Changes 2010 Information document
• Calculate your new rate of Stamp Duty if buying a property
• For more info on Stamp duty check out our Stamp Duty Advice Article