People still concerned they could be hit with 6% stamp duty from Budget 2018

Nov 2, 2017

Concerns are still continuing out there for people, who bought non-residential property, and didn’t close the deal before the increase from 2% to 6% announced and becoming effective on  Budget day 2017.

Sylvester Phelan in Agriland.ie as recently as 31st October pointed out that according to Lorcan McCabe, chairperson of the ICMSA’s Farm Business Committee, the importance of the issue is such that clarification must be provided on the matter.

McCabe said that two issues are particularly concerning for farmers. Firstly, in relation to contracts, he said “it is important that farmers qualify for the 2% stamp duty rate in cases where deposits on land were paid before the Budget 2018 announcement”. The second instance was the proposal that in order to qualify for the 2% rate the sale must be completed by year end. McCabe said “while, in theory, this sounded reasonable it ignored the reality that, in practice, delays outside of the control of the farmer can often occur – usually in relation to legal matters”.

Transitional arrangements were announced 6 days ago by Revenue, as follows :-

he transitional measures apply stamp duty at a rate of 2% on instruments that are executed before 1 January 2018 where there was a contract in place before 11 October 2017 that was binding on the parties to the contract and the instrument contains a certificate to this effect.

A person who files a stamp duty return before the enactment of the Finance Bill and who is  satisfied that the transitional measures would apply if the Finance Bill was enacted, has two options. He or she may-

  1. File a return through the e-stamping system, pay stamp duty at the rate of 6% and be issued with a stamp certificate. On enactment of the Finance Bill, the filer can then request a refund of the difference in the stamp duty paid between the 2% and 6% rates by amending the return and submitting the relevant documentation to Revenue, or
  2. File a return through the e-stamping system and pay the stamp duty at the rate of 2%, in which case a stamp certificate will not be issued.  On enactment of the Finance Bill, Revenue will publish information on how the postponed stamp certificate can be obtained.

 

You can visit Agriland.ie full article here =

Clarification sought on arrangements for ‘retrograde’ stamp duty increase

 

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