I am advised by Revenue that the Stamp Duty Refund scheme was introduced in respect of non-residential land that was purchased on or after 11 October 2017 at the increased Stamp Duty rate of 6% and subsequently developed for residential purposes. The scheme was intended to incentivise the building of houses and apartments following the increase in the rate of Stamp Duty on the purchase of land from 2% to 6% (Budget Day 10 October 2017).
A refund of the difference (some or all, depending on the particular circumstances) between the previous rate of 2% and the increased rate of 6% may be claimed where certain conditions are satisfied. The main conditions are that the purchaser must have paid Stamp Duty at the rate of 6% when acquiring the land, construction work must have started within 30 months of the land being purchased and the residential development must be completed within two years of the start of construction.
As the scheme is contingent on Stamp Duty being paid at the rate of 6%, any residential development started on foot of planning permission and commencement notice relating to land purchased before 11 October 2017 would not come within the scope of the scheme. Such land would have been subject to the previous 2% rate of Stamp Duty.