Stamp Duty Changes in Budget

Stamp Duty Changes in 2011 Budget

The rate of stamp duty on residential property will be changed  to 1% on all properties valued up to €1 million.
A rate of  2% will apply to property valued over €1 million.
Stamp duty on land remains unchanged.

The changes take effect from  8 December 2010

All stamp duty reliefs and exemptions listed below are to be abolished

* • First time buyer relief

* • Exemption for new houses under 125 sq m in size

* • Relief on new houses over 125 sq m in size


* • Consanguinity relief for residential property transfers

* • Exemption for residential property transfers valued under €127,000

* • Site to child relief

Current stamp duty levels are  zero on values below €125,000, 7% on the next   € 875,000  and 9% on the balance .

This means that  First Time Buyers will now pay stamp duty on all house purchases. What may have seemed like a cut – will actually be a big increase for FTbs. Also – on lower priced homes – the removal of the 0% rate on the first €125k  will mean more stamp duty expense for buyers of smaller homes or apartments .

Transitional arrangements will apply where, if as a result of the new rates, a purchaser will pay more stamp duty.
If  sale completes on or after 8 December 2010 and before 1 July 2011 – and  there was a binding contract which had been entered into prior to 8 December 2010 – then the pre Budget rates will be applied.