Stamp Duty on a house is liable from when ?

I was trying to recall what year it was that this particular point became of huge importance in a development I was doing and I looked up some old stamp duty documents I keep- interestingly I came across a leaflet that I had earmarked from the Revenue about changes to stamp duty in 2000- the Revenue had issued a guideline on transitional arrangements saying that if as a result of changes to stamp duty you were disadvantaged by the changes and you had a contract executed prior to the changes you could avail of the old regime by simply putting a finance cert in the deed stating that the contract was executed prior to the change. Which is a long winded way of saying that at THAT time you could choose which regime was most advantageous to you- so perhaps the same will happen again. Or at least certainly I 'll be arguing that point if necessary. Which is good news all round.
 
Our solicitor (who is a relation of mine) advised us that it is the date on the contract that is applicable for stamp duty. On this basis we have arranged to sign contracts on 8th Dec and close on 14th.
 
Rang the Stamp Duty section of Revenue

They say it's "up to Finance" whether the contract date or deed execution date is the applicable date..and that this can change from budget to budget .. dunno if this is true or not I would have thought it was always one or the other
 
Edit: From the Revenue Budget 2005 guide at [broken link removed]

"The revised stamp duty rates, which will apply to instruments (e.g. deeds of conveyance or transfer or leases) executed on or after 2 December 2004, are set out in the table below...

"Contracts -Where a contract has been entered into prior to 2 December 2004 the new rates will apply provided the instrument (e.g. deed of conveyance or transfer or lease) giving effect to the contract is executed on or after 2 December 2004."

I think the above sentence in relation to contracts solves this whole question - if it applies to any 2006 changes. Am I correct?
 
podgerodge said:
Edit: From the Revenue Budget 2005 guide at [broken link removed]

"The revised stamp duty rates, which will apply to instruments (e.g. deeds of conveyance or transfer or leases) executed on or after 2 December 2004, are set out in the table below...

"Contracts -Where a contract has been entered into prior to 2 December 2004 the new rates will apply provided the instrument (e.g. deed of conveyance or transfer or lease) giving effect to the contract is executed on or after 2 December 2004."

I think the above sentence in relation to contracts solves this whole question - if it applies to any 2006 changes. Am I correct?
Click to expand...


Does this mean people are ok if they wait until after the budget to close?
 
newkid30 said:
Do people still think stamp duty is still going to be abloished?
Just curious?
Click to expand...
No. This discussion is about if there were changes to it what date would apply.


happypat said:
Does this mean people are ok if they wait until after the budget to close?
Click to expand...

I was hoping mf1 or vanilla would answer this!
 
Can't podgerodge, as we don't know. If there are changes, the Revenue might announce transitional arrangements as they have done in the past, or they might not say anything at all. If they don't say anything at all I imagine it's up to each individual to argue their case. Certainly I will be arguing the case for any of my clients to be affected.
 
Hi Vanilla
I was just wondering though, based on the 2005 document, is it open and closed that the deed date is the relevant date?
 
Not necessarily since in 2000, the transitional arrangements were exactly the opposite- i.e that if the contract was executed prior to the change you could rely on the old regime rather than the new. Although at that time you could choose to take the new regime if it were more advantageous to you.

So it follows that the Revenue could issue transitional arrangements that could go either way.

Don't forget that not all changes are advantageous either- the rates could go up! Or certain reliefs could be abolished.
 
You must log in or register to reply here.
Back
Top