Budget 2011 - Stamp Duty
Reduction in Rate of Stamp Duty on Residential Property Transactions
| Consideration | Rate of duty |
|---|---|
| *First €1,000,000 | 1% |
| Excess over €1,000,000 | 2% |
*The lower rate applies to the entire consideration up to €1,000,000 and the current exempt threshold of €127,000 has been abolished.
The new rates apply to instruments executed on or after 8 December 2010.
Transitional arrangements will apply where, as a result of the new rates, a taxpayer is disadvantaged compared to the stamp duty treatment applicable prior to 8 December 2010. The transitional arrangements will apply where an instrument is executed on or after 8 December 2010 and before 1 July 2011 solely in pursuance of a binding contract which had been entered into prior to 8 December 2010.
| Transfer of site from Parent to Child | All reliefs/exemptions abolished in respect of instruments executed on or after 8 December 2010. Exception: Instruments executed on or after 8 December 2010 but before 1 July 2011 in respect of binding contracts entered into before 8 December 2010, where the effect of the abolition would be that the stamp duty payable would be higher than it would have been under the pre-Budget position. |
| New Dwellinghouses /Apartments with floor area not exceeding 125 sq.m. | |
| New Dwellinghouses /Apartments with floor area exceeding 125 sq.m. | |
| Residential Property first time purchaser relief | |
| Consanguinity Relief (transfers between certain relatives) in relation to residential properties only |
Farmer Stock Relief
The existing general 25 per cent stock relief for farmers and the special incentive stock relief of 100 per cent for certain young trained farmers are being extended from 1 January 2011 for a further two years subject to clearance with the European Commission under State aid rules.
Farm Pollution Control Relief
The existing scheme of accelerated capital allowances for farmers who incur capital expenditure, before 1 January 2011, on farm buildings and structures for use in the control of pollution is not being extended.
This gives effect to the recommendation made by the Commission on Taxation that this relief should be discontinued.
Normal capital allowances will apply to expenditure incurred on or after 1 January 2011.