Stamp duty issue

Reuben321

Registered User
Messages
19
My brother bought a residential site to build a home with some savings. The sale was completed on 6th January 2011. The Contract was signed in October 2010 and there were some budget changes to stamp duty in November 2010 but these do not appear to make any change to stamp duty on residential sites.

He did not have the money to pay stamp duty at the time and kept putting it off. The Deed is still not stamped and he has been told he will have to pay stamp duty at 6% as well as significant interest, penalties and surcharges. He still has no money but he needs to sell the site now for financial reasons so the Deed will have to be stamped and registered.

Is there any way he can get a reduction in the amount of stamp duty , surcharges , penalties and interest payable and what way should he go about doing this?
 
Anyone any ideas about what he could do to achieve a reduction? He is in a desperate situation financially.
Any advice would be appreciated.
 
My understanding is that stamp duty on real property (which includes land) is determined by the date of conveyance and not when the contract is signed. I'm taking it from your post that the deed was signed on 6th January 2011 which is the date of conveyance. The rates of stamp duty changed for instruments executed on or after 8th December 2010 when the rate rate of stamp duty moved to 1% for the first €1M and 2% for any amount over €1M. Based on my understanding of stamp duty and the details my view is that the 1% rate is correct. He will still have interest, penalties etc but on a much reduced rate as the penalties may be geared to the stamp duty payable. A new stamp regime on penalties came in around this time and I don't recall the particular date . Please note I am not a solicitor but I have done work in stamp duty over the year.

I would suggest that your brother calls the Revenue stamp duty line and ask them. He should get a copy of the contract and the deed of conveyance as these are the core documents in relation to stamp duty.

Additionally I would add that your brother, or rather the new purchaser, may avail of the sub-sale relief. This is where your brother would fall away as purchaser and his contract for sale is assigned to the new purchaser. The advantage is that only one hit of stamp duty is payable. I would add this relief is highly technical and above my pay grade - consultation with a stamp duty specialist may be required to see if this is available.
 
Back
Top