Stamp Duty refund scheme for land developed for residential purposes
Part 7 of the Stamp Duty Manual has been updated to include a new chapter 14 which outlines the provisions of section 83D of the Stamp Duties Consolidation Act 1999.
The section, introduced in Finance Act 2017, provides for a Stamp Duty refund scheme where land that is chargeable at the 6% non-residential rate of Stamp Duty is subsequently developed for residential purposes.
-A 6% rate of stamp duty applies to the purchase of non-residential land in respect of instruments executed on or after 11 October 2017.
-However, a refund of the difference between the previous non-residential rate of 2% and the current rate of 6% (i.e. maximum of two-thirds of the amount of duty paid at 6%) may be claimed in respect of land that is subsequently developed for residential purposes.
An IT development to allow electronic claims to be made through the eStamping system is scheduled for completion in July 2018. We will update this manual and publish guidance on our website in June 2018 detailing how refund claims are to be made and the documentation that must accompany a claim.