Written answers

Wednesday, 13 December 2017

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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84. To ask the Minister for Finance the situation in a case in which a sale is agreed and deposit paid for land on 10 October 2017, but no contract has been signed regarding non-residential property on transactions eligible for the 2% rate under transitional relief measures; if the lower rate of stamp duty is still applicable if the contract is executed before year end; and if he will make a statement on the matter. [53384/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The rate of stamp duty on commercial land was increased to 6% on Budget Day, this rate applies in relation to all relevant conveyances executed after midnight on 10 October 2017. I subsequently introduced transitional measures in the Finance Bill that will allow for the previous rate of 2% to continue to apply where the parties to a contract entered into a binding contract before 11 October 2017 and where the conveyance or transfer is executed on or before 31 December 2017. Both of these conditions must be satisfied.

I am advised by Revenue that the payment of a deposit does not, of itself, necessarily indicate 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 binding contracts before 11 October 2017 and indeed, whether the conveyances will be executed on or before 31 December 2017.

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