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Get money back from the tax-man : refunds of stamp duty for one-off houses

You can get a refund of stamp duty where you acquire a site and then build a home on it !

A 1-2% stamp duty tax applies to the purchase of residential property.

A 2% used to be the rate for non-residential property (e.g. land). Now, a 6% rate of stamp duty applies to the purchase of non-residential property 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% may be claimed in respect of land that is subsequently developed for residential purposes.

The relevant provisions are contained in section 83D Stamp Duties Consolidation Act, 1999. The terms of the refund scheme are designed to ensure that only developments that contain sufficient completed housing units within a reasonable period of time can qualify for a refund.

However, according to Irish Revenue’s own manual, “the scheme applies to both one-off houses as well as to larger housing developments.”References to ‘developers’ in this manual includes builders and those building their
own one-off homes. References to a ‘land’ includes greenfield sites as well as land occupied by non-residential buildings such as office blocks and other commercial buildings.

The scheme is not open-ended. Construction operations must commence on or before 31 December 2021 and a 2-year time limit is allowed for completion, effectively terminating the scheme in 2023.