STAMP DUTY : BUDGET 2008 CHANGES

On a property where the floor area is greater than 125 sq. metres, stamp duty is payable by owner occupiers at the following rates on the chargeable consideration (see further below). Investors also pay stamp duty on new larger homes according to the table / calculations set out below.

Property Value Rate
Up to €125,000 Exempt
Next €875,000 7%
Balance 9%

CHARGEABLE CONSIDERATION

For a new house, in the case of owner occupiers, if the area of the house or apartment is greater than 125 sq. metres stamp duty is payable on the chargeable consideration. The chargeable consideration is assessed on the greater of the cost of the site or 25% of the cost of the site plus the building costs (less VAT). In the case of a completed house the purchase price is reduced by 75% in order to ascertain the chargeable consideration.

In the case of investors, stamp duty is payable on the total cost of the site and contract where they are connected, in the case of a site only stamp duty is applicable on the full cost of the site, and in the case of a new completed house on the full purchase price.

EXAMPLE 1:

PURCHASE OF SITE (COST €500,000) AND BUILDING CONTRACT (COST €400,000) OVER 125 SQ. METRES

For owner occupiers:

The total consideration here is €900,000.
The chargeable consideration for stamp duty purposes is calculated on the greater of the cost of the site, being €500,000, or 25% of the total cost of the site plus the building costs (less VAT), being €900,000 X 25%= €225,000

Stamp Duty is calculated on greater amount of €500,000:

€125,000 @ nil
€375,000 @ 7% = €26,250
Total Stamp Duty = €26,250

For Investors:

Stamp duty chargeable consideration here is €900,000. Stamp Duty is calculated as follows:

€125,000 @ nil
€775,000 @ 7% = €54,250
Total Stamp Duty = €54,250

EXAMPLE 2:

PURCHASE OF SITE (COST €1,200,000) AND BUILDING CONTRACT (COST €750,000) OVER 125 SQ. METRES

For owner occupiers:

The total consideration here is €1.95m.
The chargeable consideration for stamp duty purposes is calculated on the greater of the cost of the site, being €1,200,000, or 25% of the total cost of the site plus the building costs (less VAT), being €1,950,000 X 25%= €487,500

Stamp Duty is calculated on greater amount of €1,200,000:

€125,000 @ nil
€875,000 @ 7% = €61,250
€200,000 @ 9% = €18,000
Total Stamp Duty = €79,250

For Investors:

Stamp duty chargeable consideration here is €1,950,000. Stamp Duty is calculated as follows:

€125,000 @ nil
€875,000 @ 7% = €61,250
€950,000 @ 9% = €85,500
Total Stamp Duty = €146,750

EXAMPLE 3:

PURCHASE OF COMPLETED HOUSE OVER 125 SQ. METRES COST €1,300,000

For owner occupiers:

Stamp Duty is calculated as follows:

Chargeable consideration = €1,300,000 reduced by 75% = €325,000
€125,000 @ nil
€200,000 @ 7% = €14,000
Total Stamp Duty = €14,000

For Investors:

Stamp duty is calculated as follows:

Chargeable consideration here is €1,300,000.
€125,000 @ nil
€875,000 @ 7% = €61,250
€300,000 @ 9% = €27,000
Total Stamp Duty = €88,250

Budget 2008 - Stamp Duty Changes To Non - Residential Property (i.e. Sites and Commercial Properties)

The top rate of stamp duty for non-residential property has been reduced from 9% to 6% in respect of instruments executed on or after 15 October 2008 and Revenue will, on an administrative basis until the enactment of the Finance Act 2009, give immediate effect to the application of the reduced rate.

The revised rate structure, which will also apply to the premium paybable under a lease of non-residential propery, is set out in the table below

Aggregate Consideration Rate of Duty
€10,000 Exempt
€10,001 to €20,000 1%
€20,001 to €30,000 2%
€30,001 to €40,000 3%
€40,001 to €70,000 4%
€70,001 to €80,000 5%
Over €80,001 6%

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