Higher Rate of Stamp Duty on Acquisition of Certain Residential Property


In order to discourage the purchase of multiple residential units by any one individual or entity in the context of the current housing crisis and the ongoing shortage of housing for owner-occupier purchasers, a higher rate of stamp duty was introduced on the acquisition of certain residential property. 
  • Section 31E SDCA 1999 charges a higher 10% rate of duty on the acquisition of individual residential units such as houses and duplexes, but not to apartments, where a person acquires at least 10 such units during any 12-month period.
  • Section 83E SDCA 1999 provides for a partial refund in relation to stamp duty paid at the rate of 10% where a residential unit is subsequently leased, for a term of at least 10 years, to a local authority or an approved housing body for the provision of social housing. The refundable amount is the difference between the stamp duty paid at the 10% rate of duty and the standard rate of duty that applies to residential property; i.e. 1% on values up to €1m and 2% on values exceeding €1m.
The above sections were introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2021 that gave effect to a Financial Resolution (FR) passed on 19 May 2021. The provisions contained in the FR came into effect on 20 May 2021 while additional provisions contained in the subsequent Act (giving legal effect to the FR) generally came into effect on 19 July 2021. Revenue eBrief 165/21 was issued on 2 September 2021 confirming that Revenue have published Stamp Duty Tax & Duty Manuals (TDMs) to provide guidance on these new sections including guidance on:
  • the operation of the aggregation rules
  • the valuation of the relevant residential property
  • Application of the Refund Scheme
  • Anti-avoidance provisions where property is acquired indirectly by an individual by way of acquiring shares in a company or through a partnership or other investment undertakings
  • Interactions with other SDCA 1999 provisions

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