I am informed by the Revenue Commissioners that the stamp duty regime applicable to residential property was reformed under Budget 2011. A new lower stamp duty rate of 1% was introduced for residential property transactions up to €1,000,000 with a higher rate of 2% applying to the excess over €1,000,000. The reform also involved the abolition of certain reliefs relating to residential property.
The stamp duty changes apply to instruments executed on or after Budget Day (8 December 2010). There are transitional arrangements in place to ensure that anyone who entered into a binding contract before 8 December 2010 is not disadvantaged by the new regime.
A second time buyer, who had entered into an agreement but had not entered into a legally binding contract before 8 December 2010, is subject to the new lower stamp duty rates where the instrument of transfer giving effect to the purchase is executed on or after 8 December 2010. Such a person will not be in a position to avail of the transitional arrangements where the stamp duty treatment that applied before 8 December 2010 is more favourable than the treatment introduced under Budget 2011.
A second time buyer, who had entered into a legally binding contract before 8 December 2010, will be entitled to avail of the new lower stamp duty rates where the instrument of transfer giving effect to the purchase is executed on or after 8 December 2010. Such a person will be entitled to avail of the transitional arrangements, where the stamp duty treatment that applied before 8 December 2010 is more favourable than the treatment introduced under Budget 2011, provided the instrument of transfer is executed on or after 8 December 2010 but before 1 July 2011.
