Eoin Ó Broin
Question:149. Deputy Eoin Ó Broin asked the Minister for Finance if stamp duty is paid on any Part V, affordable housing fund turnkey purchase or CREL-funded turnkey purchase homes. [17190/24]
View answerThursday, 18 April 2024
Questions (149)
Written answers
I am advised by Revenue that the standard rates of stamp duty applying on the purchase of residential property are 1% on values up to €1 million and 2% on values exceeding €1 million. Section 31E of the Stamp Duties Consolidation Act (SDCA) 1999 provides for a higher 10% rate of stamp duty to be charged on the acquisition of residential properties situated in the State, excluding apartments, where a person acquires at least 10 such properties during any 12-month period.
I am also advised that stamp duty is a self-assessed tax and is payable by the purchaser of the property.
The charge to stamp duty in respect of the schemes referred to by the Deputy are as follows:
1. Part V homes
With regard to Part V homes, I assume the Deputy is referring to situations where properties are transferred to a local authority or Approved Housing Body (AHB) at “existing use value” for the provision of social and affordable housing. Sections 93A and 106B(2) SDCA 1999 provide for an exemption from stamp duty on conveyances, transfers or leases of property to AHBs and local authorities respectively. Further information on sections 93A and 106B SDCA 1999 is available on the Revenue website at:
www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/part-07.pdf
Where a Part V home is subsequently sold on to an individual purchaser, stamp duty will be chargeable at the appropriate rate. However, where such a property is sold by a local authority the stamp duty liability will be capped at €100 in accordance with section 106B(3) SDCA 1999.
2. Affordable Housing Fund turnkey purchases
Where AHBs and local authorities acquire properties for the provision of affordable housing an exemption from stamp duty applies under sections 93A and 106B(2) SDCA 1999 respectively. Where a developer (as arranged by a local authority) acquires property for the provision of affordable housing, a charge to stamp duty will arise. However, section 83DA SDCA 1999 provides for a full repayment of stamp duty where a property is acquired by such a developer and the property is then sold, within 12 months of its acquisition, to an affordable home purchaser under the Affordable Housing Act 2021. Detailed guidance on section 83DA is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83da-repayment-of-stamp-duty-under-affordable-dwelling-purchase-arrangements.pdf.
Purchases of affordable housing by eligible members of the public under the Local Authority Affordable Purchase scheme are chargeable to stamp duty at the standard rates applying on the acquisition of residential property, which are 1% on values up to €1 million and 2% on values exceeding €1 million. If, however, the housing is purchased directly from a local authority, the stamp duty liability will be capped at €100 in accordance with section 106B(3) SDCA 1999.
3. Cost Rental Equity Loan (CREL) funded turnkey purchases
It is my understanding that only AHBs, local authorities and the Land Development Agency (LDA) are currently engaged in the delivery of Cost Rental homes. As I have previously stated, conveyances, transfers or leases of property to AHBs and Local Authorities are exempt from stamp duty under the SDCA 1999.
The LDA does not benefit from a stamp duty exemption, however, it may be eligible for a partial repayment of stamp duty paid on the acquisition of residential property at the higher rate of 10% pursuant to section 31E where the property is designated as a cost rental dwelling under the Affordable Housing Act 2021. Section 83DB SDCA 1999 provides for this repayment scheme and detailed guidance on the scheme is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-83db-repayment-of-stamp-duty-in-respect-of-certain-residential-units.pdf