The increase in stamp duty on non-residential property covers transfers of property and also leases of non-residential property.
This means that for instruments executed on or after 11 October 2017 the stamp duty is payable at a rate of 6%.
A Financial Resolution (Financial Resolution No.2) was passed on Budget Night on 10 October 2017 to bring in this law.
Transitional arrangements are to be introduced when the Finance Bill 2017 (section 55) is signed into law which will allow for a 2% rate of stamp duty to apply if :
(a) A binding contract was entered into before 11 October 2017;
(b) A statement/certificate to this effect is inserted in the instrument (Revenue may provide wording for this certificate); and
(c) The instrument is executed before 1 January 2018 (i.e. by 31 December 2017).
As the transitional arrangements are not yet law it would appear that all instruments of non-residential property transactions executed on or after 11 October 2017 are liable to stamp duty at 6% unless a claim for a relief is available (for example the special consanguinity relief for farmers or the young trained farmer relief).
Once the transitional measures come into effect hopefully a refund mechanism will be in place for instruments executed before 1 January 2018 which contain the required statement/certificate.
Guidance has now been issued by the Revenue Commissioners in the form of eBrief 94/2017
It provides that if 2% duty is paid a certificate will not issue but will be postponed until after the Finance Act is passed.
It is unclear if this proposal will be acceptable in all situations especially those involving financial institutions.
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