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| CHANGES
IN STAMP DUTY RATES |
The
Finance No. 2 Bill, which was signed into law in July, 2000, made
a number of changes to taxation in relation to housing as announced
by the Government following the third Bacon report.
Stamp
Duty
The
new rate structure is as follows:
|
|
| Investor |
Aggregate
Consideration |
Rate |
|
All
categories |
9% |
|
|
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| First
Time Purchaser |
Aggregate
Consideration |
Rate |
|
Not
exceeding £150,000 |
0% |
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£150,001
to £200,000 |
3% |
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£200,001
to £250,000 |
3.75% |
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£250,001
to £300,000 |
4.5% |
|
£300,001
to £500,000 |
7.5% |
|
greater
than £500,000 |
9% |
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|
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| Other
Owner Occupier |
Aggregate
Consideration |
Rate |
|
Not
exceeding £100,000 |
0% |
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£100,001
to £150.000 |
3% |
|
£150,001
to £200,000 |
4% |
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£200,001
to £250,000 |
5% |
|
£250,001
to £300,000 |
6% |
|
£300,001
to £500,000 |
7.5% |
|
greater
than £500,000 |
9% |
The
Act includes transitional arrangements to apply to persons who had
entered into written contracts before 15 June to buy a residential
property and who could be subject to higher rates of duty under the
new regime. Such people will pay duty at the old rates provided their
purchase contracts are completed by 31 January, 2001.
Anti-Speculative Tax
The Act introduced a new 2% anti-speculative tax which is designed
to curb short-term speculative demand for housing. The new tax applies
for 3 years to second and additional residential properties acquired
on or after June 15. (As with stamp duty, there are transitional provisions
for persons who had entered into written contracts before June 15
to buy a residential property).
An individual's principal private residence is exempt. However, where
an individual changed principal private residence on/after 15 June
while retaining ownership of his/her previous residence, the latter
property will come within the scope of the tax, even if owned before
June 15. The tax will not apply to residential properties received
through gift or inheritance where the property was, owned by the donor
before June 2000. Where a property is built on land which was acquired
before June 15, 2000, no tax applies.
Further information on all aspects of Stamp Duty can be had by contacting:
The
Stamp Duty Office
Capital Taxes Division
Stamping Building
Dublin Castle
Dublin 2
Tel: (01) 6792777
Fax:(01)6794115
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The
Stamp Office
Government Offices
Sullivan's Quay
Cork
Co. Cork
Tel: (021) 968783
Fax:(021)318088 |
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