Since the 11th October 2017, the stamp duty rate for non-residential property increased from 2% to 6%. A scheme introduced by Revenue allows the potential for a refund of a portion of stamp duty paid where the rate of 6% was charged. The refund amount will be for the difference of the previous rate at 2% and the current rate of 6% allowing a two-thirds refund on the stamp duty paid.
How to qualify for a stamp duty refund
To qualify for this refund, the non-residential property must be redeveloped by developers which includes builders constructing multiple houses and individuals building a one-off property for themselves.
There is a time limit of two years allowed for the completion of these properties. The building of any property/properties whereby builders are trying to avail of the scheme must commence before the 31st December 2021 and completion of the property/properties can take place no later than the 31st December 2023.
In order to qualify for the above scheme, the stamp duty return must be filed and stamp duty must be paid at a rate of 6%. Furthermore, construction must begin within a period of 30 months and this timeframe runs from the day after the deed is stamped. Some of the activities that would satisfy the definition of construction for the purposes of this scheme include demolition of existing buildings, access works, laying foundations and clearing a site.
As stated above, the completion of works must complete within two years of the commencement and this is measured by reference to a local authority acknowledging receipt of a commencement notice or a seven-day notice.
The completion of a property will be determined by the date a Certificate of Compliance on Completion is registered by the local authority.
Housing units test
It is important to note that a test also applies to this scheme where either 75% of the total surface area of the land must be occupied by housing units or the gross floor space of the housing units must account for at least 75% of the total surface area of the land.
A claim can be made within 4 years of the commencement notice that was served in respect of the property and it is claimed on a self-assessment basis.