Dáil Éireann Debate, Tuesday - 15 January 2019
187. Deputy Michael McGrath asked the Minister for Finance the number of applications made for repayment of stamp duty in circumstances in which land is used for residential development under section 61 of the Finance Act 2017 since 11 October 2017; and if he will make a statement on the matter. [54389/18]
View answer188. Deputy Michael McGrath asked the Minister for Finance the number of successful applications made for repayment of stamp duty in circumstances in which land is used for residential development under section 61 of the Finance Act 2017 since 11 October 2017; and if he will make a statement on the matter. [54390/18]
View answer189. Deputy Michael McGrath asked the Minister for Finance the number of unsuccessful applications made for repayment of stamp duty in circumstances in which land is used for residential development under section 61 of the Finance Act 2017 since 11 October 2017; the number that were unsuccessful due to the restrictions outlined in section 83D(3)(c) referring to the 75% rule; and if he will make a statement on the matter. [54391/18]
View answerI propose to take Questions Nos. 187 to 189, inclusive, together.
Section 61 of the Finance Act 2017 provides for a refund scheme of Stamp Duty paid in the case of residential developments. Where Stamp Duty is paid at the 6% rate, the accountable person can seek a refund of up to two-thirds, having commenced building dwelling unit/s.
I am advised by Revenue that 180 applications for repayment of Stamp Duty were received in the period up to 10 January 2019. Of these, 151 have been processed and refunds issued. The remaining 29 applications are still being processed.
The ‘75% rule’ referred to by the Deputy is a condition of the refund scheme that seeks to ensure that a reasonable part of the land is developed for residential purposes and applies in the case of multi-unit developments only. The legislation provides that a refund claim may be made as soon as building work begins and Section 83D(3)(c) of the Stamp Duties Consolidation Act provides for a clawback of the refund if the ‘75% rule’ is not subsequently met.
Revenue has confirmed that the ‘75% rule’ applied in 6 of the 151 successful applications as they were multi-unit developments. These applications were processed based on declarations by the applicants that the ‘75% rule’ would be satisfied when building works are completed. Revenue has advised that it is too soon to say whether the clawback provisions will be triggered in these cases as the legislation provides for a period of two years within which the building work can be completed.
