Francis Noel Duffy
Ceist:112. Deputy Francis Noel Duffy asked the Minister for Finance if the increased rate of stamp duty announced under Budget 2025 will apply to properties which have already reached sale agreed. [40229/24]
Amharc ar fhreagraTuesday, 8 October 2024
Ceisteanna (112)
Freagraí scríofa
I announced on Budget Day that a new 6% rate of Stamp Duty will be applied to the value of residential property in excess of €1.5 million (so increasing the rate applied to that element of a property's value from 2% to 6%), and that the higher rate of Stamp Duty on bulk acquisitions of houses is to be increased from 10% to 15%. Both of the increased rates apply to all relevant instruments of transfer executed after midnight on 2 October 2024.
I also announced on Budget Day that transitional arrangements would apply where there is a binding contract in place before 2 October 2024 and the transfer of the property is finalised before 1 January 2025. In these circumstances a purchaser can benefit from the previous rates. However, any person wishing to rely on the transitional arrangements must produce a copy of the executed instrument of transfer which must contain a certificate to this effect.
I am advised by Revenue that reaching sale agreed does not, in itself, confirm that the parties to a transaction had entered into a binding contract for the conveyance of property. If individuals are in doubt about the status of a transaction, they should consult with their legal advisors to determine whether they had, in fact, entered into a binding contract before 2 October 2024 and whether the instrument transferring the property will be executed on or before 1 January 2025.