Cathal Crowe (Clare, Fianna Fail)
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93. To ask the Minister for Finance if exemptions will be made to the newly increased stamp duty rate for inheritance cases and so on (details supplied) [29929/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that there is no stamp duty payable on the inheritance of property. However, the transfer of a property that is residential property during their lifetime, including a holiday rental cottage, to a son or daughter constitutes a conveyance on sale for the purposes of the Stamp Duties Consolidation Act (SDCA) 1999. Stamp duty is payable by the transferee, whether or not the property is transferred by way of sale or gift. Where a property is sold, or otherwise transferred, for less than market value, section 30 SDCA imposes a charge to stamp duty on the market value of the property.

Stamp duty on transfers of residential property is usually chargeable at the rate of 1% where the consideration or market value does not exceed €1 million. Where the consideration or market value exceeds €1 million, stamp duty is chargeable at 1% on the first €1 million and 2% on the amount that exceeds €1 million.

In addition, the recent Financial Resolution passed by the Dáil on 19 May last provides for a new higher stamp duty rate of 10% where at least 10 residential units (excluding apartments) are acquired by an individual or a corporate entity such as a company in any 12-month period, whether by way of gift or purchase. This new measure is ‘triggered’ when a residential unit is acquired on or after 20 May 2021, with the ‘look-back’ 12-month period commencing at this time on a rolling basis. The units acquired during that period are aggregated. When the 10th unit is acquired, it is chargeable at the 10% rate and this rate also then applies to the other 9 units and to any other units acquired at the same time as the 10th unit. However, while any units acquired before 20 May 2021 are taken into account in establishing whether the threshold of 10 units has been reached, the 10% rate of stamp duty is not applied to these units but only to those units acquired on or after this date.

There are no stamp duty exemptions or reliefs in relation to transfers of residential property from a parent to a child.