I am informed by the Revenue Commissioners that between 4 April 2006 and 1 February 2007 there were 537 instances where various stamp duty reliefs which had been granted were clawed back. The total yield from the clawbacks amounted to €4,262,466. Generally each clawback referred to only one property. The clawbacks were in respect of 5 reliefs as follows:
Farm Consolidation, Section 81B Stamp Duties Consolidation Act (SDCA) 1999: 1 case — yield €1,050. The relief is given to full time farmers who exchange land in order to consolidate their farms. The relief is clawed back if the land or part of the land is disposed of within 5 years from the date of execution of the deed of transfer. The relief is in the form of zero rate of stamp duty where the lands exchanged are of equal value.
Young Trained Farmer, Section 81 SDCA 1999: 12 cases — yield €64,696. The relief is given to persons who at the date of execution of the deed have attained certain agricultural and educational standards or who subsequently attain such standards. This relief was clawed back as the lands or part of the lands the subject of the relief were disposed of within 5 years from the date of execution of the instrument without the proceeds from the disposal being used in acquiring other lands within a period of one year of the date of the disposal. The relief is in the form of a zero rate of stamp duty.
New dwelling house/apartment with floor area certificate, Section 91 SDCA 1999: 350 cases — yield €2,928,349. This relief is granted where the property has a floor area of less than 125 square metres, is occupied by the purchaser or by some person in right of the purchaser and is clawed back if the purchaser is in receipt of rent from the dwelling house/apartment other than rent received under the rent-a-room scheme within 5 years of the date of execution of deed. The relief is in the form of a zero rate of stamp duty.
New dwelling house/apartment with no floor area certificate, Section 92 SDCA 1999: 57 cases — yield €476,788. The relief is granted where the property has a floor area of greater than 125 square metres, is occupied by the purchaser or by some person in right of the purchaser and is clawed back if the purchaser is in receipt of any rent from the dwelling house/apartment other than rent received under the rent-a-room scheme within 5 years of the date of execution of the deed. The relief is applied by charging duty only on the value of the site or one quarter of the total value of the site plus building agreement, less VAT, whichever figure is the greater or on one quarter of the total consideration, less VAT where a completed house is being purchased.
First-time purchaser, Section 92B SDCA 1999: 117 cases — Yield €791,583. This relief is granted where the purchaser or purchasers at the date of execution of the deed had not individually or jointly with any other person, or persons, previously purchased another dwelling house or apartment or part of another dwelling house or apartment. The relief is granted to owner occupiers or where the property is occupied by some person in right of the purchaser and is clawed back if the purchaser is in receipt of any rent from the dwelling house/apartment other than rent under the rent-a-room scheme within 5 years of the date of execution of the deed.
I am not aware that the Financial Regulator has issued guidelines in this matter but this would be primarily an issue for the solicitors acting for the individuals concerned, who I would expect, would advise their clients of the appropriate legal requirements and exposures in this context.