Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 28:

In page 111, between lines 20 and 21, to insert the following:

“Report on stamp duty residential refund scheme

61.The Minister shall, within 3 months of the passing of this Act, prepare and lay before the Oireachtas a report on the operation and effectiveness of section 61 of the Finance Act 2017. ”.

The amendment relates to the stamp duty residential refund scheme, which was introduced in 2017, when the rate of stamp duty on commercial property and land increased from 2% to 6%. The idea behind the refund was to avoid deterring the purchase of land for the purpose of building homes, given the obvious need for them. The way it worked, and continues to work, is that two thirds of the stamp duty paid can be sought by way of a refund. In effect, the net rate for the purchase of land used, subject to certain conditions, for the construction of homes was 2%. Given that stamp duty has increased to 7.5%, will the refund still be two thirds of the duty paid, or in effect a 5% rebate? Will the net stamp duty on the purchase of land be 2.5%? The Minister might explain that.

Is he satisfied with the operation of the scheme in respect of the different rules that apply? Of the gross floor area, there is a 75% rule for the use of the overall site, or it can be used for apartment developments, for example. Is he satisfied that the scheme captures developments built on land purchased at the higher rate of stamp duty and that it does not deter the building of homes? Will he outline the time limit within which developments must be completed in order for the refund to be processed?

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