Stamp Duty Changes in Budget 2011

The Minister for Finance announced certain changes in relation to stamp duty in his Budget speech on the 7th of December 2010.

NEW RATES

A new lower rate of 1% will apply to instruments where the consideration attributable to residential property does not exceed €1,000,000. A higher rate of 2% will apply to the excess of the consideration over €1,000,000

RELIEFS ABOLISHED

Many of the previous Stamp Duty reliefs have been abolished, including:

• Section 83A of the Stamp Duties Consolidation Act 1999 – this exemption applied where a site was transferred by a parent to a child for the purpose of building a house for occupation by the child.
• Section 91A of the Stamp Duties Consolidation Act 1999 – this exemption applied to the purchase by an owner-occupier of a new house or apartment where the floor area did not exceed 125 square metres.
• Section 92 of the Stamp Duties Consolidation Act 1999 – this relief applied to the purchase by an owner-occupier of a new house or apartment where the floor area exceeded 125 square metres.
• Section 92B of the Stamp Duties Consolidation Act 1999 – this exemption applied to a first time purchaser who acquired a house or apartment for owner-occupancy.
• Consanguinity Relief provided for under Schedule 1 of the Stamp Duties Consolidation Act 1999 – this relief will no longer apply to residential property but will continue to apply to non-residential property

All of these changes will apply to instruments executed on or after the 8th of December 2011.