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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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10% stamp duty on cumulative purchase of 10 or more houses

The Minister for Finance presented a Financial Resolution in the Dáil that increases the rate of stamp duty applicable to the bulk purchase of residential units in Ireland. The resolution was passed by the Dáil without a vote. The resolution inserts section 31E in the Stamp Duties Consolidation Act 1999 to provide for a 10 percent stamp duty charge on the multiple purchase of 10 or more residential houses on a cumulative basis over a 12-month period.

The new provisions apply to acquisitions of houses on or after 20 May 2021. On the advice of the Attorney General’s office the provisions include a three-month transition period for the execution of contracts that have been entered into but not completed prior to the commencement of the resolution.

Once triggered, the increased rate of stamp duty will apply to all houses acquired in that 12-month period, including the first nine houses. Units purchased before the resolution was commenced are counted towards triggering the 10-house threshold and the higher stamp duty rate will apply to those houses bought after the commencement of the resolution.

The provisions include an exemption for the purchase of apartment blocks defined as a multi-story residential property comprising of not less than three apartments with grouped or common access. Minister Donohoe defended opposition to this provision on the basis that “there is a significant risk that developers would exit from the apartment building market, that projects would no longer be viable, and an important element of our future housing strategy would be lost”.

The higher rate of stamp duty will not apply to the multiple purchases of property by local authorities, affordable housing bodies and the Housing Agency.

The conveyance or transfer of shares in a company, and interests in other entities such as partnerships, resulting in a change in the person(s) having direct or indirect control over the residential units concerned will give rise to a charge at the higher rate of stamp duty on the value derived from the residential unit.

More information can be found in the Minister for Finance’s announcement of the new measures. The debate surrounding the Financial Resolution is available on the Oireachtas website.