Budget 2011 – Stamp Duty


The 2011 Budget introduced some major changes in many areas of tax including the area of stamp duty. Under previous stamp duty rules, different schemes and rates applied to first-time buyers and non first-time buyers. This distinction has now been effectively removed and from the 8th December 2010 all house purchases in Ireland are subject to stamp duty.

Regardless of whether you are a first-time buyer, owner occupier or investor, the new rates are as follows:

Stamp Duty Rates in Ireland – from Dec 8th 2010

1% on properties valued under €1,000,000
2% on properties valued at or over €1,000,000

If you are a first-time buyer, you will now have to pay stamp duty where previously you would not have been liable. However, if you are not a first time buyer, the new rules will mean, for the majority of people, they will have to pay less stamp duty.

There are also a number of reliefs and exemptions that have been abolished in the 2011 Budget. Specifically, the following reliefs are no longer available:

– First Time Buyer relief

– Transfer of a site from a parent to a child for the purpose of building a home

– Owner Occupier relief for the purchase of a newly built home

– Relationship relief in relation to residential property

The stamp duty rates for non-residential property were not changed in Budget 2011. “Non-residential” property includes a scenario where a person is buying a site to build a house. The rate of stamp duty payable on non-residential property is based on the value of the land.

There are many costs involved in buying property and it’s important to talk to your solicitor before you start looking at property to ensure you are fully aware of all costs that may arise.

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