Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that approved affordable housing purchasers are liable for stamp duty on the acquisition of their approved affordable housing. Stamp duty is charged at the standard rates applying on the acquisition of residential property, which are 1% on values up to €1 million and 2% on values exceeding €1 million. If, however, the housing is purchased directly from a local authority, the stamp duty liability will be capped at €100 in accordance with section 106B of the Stamp Duties Consolidation Act 1999 (“SDCA”).

In relation to the Deputy’s question as to whether the liability is on the discounted affordable house price or on the full market value, I am advised by Revenue that, as a general rule, stamp duty is calculated by reference to the consideration paid for a property. However, section 30 SDCA provides that if the consideration paid is less than the market value of the property and this confers a “substantial benefit” on the purchaser, stamp duty is instead calculated by reference to the market value.

Stamp duty is a self-assessed tax and is payable by an approved affordable housing purchaser in accordance with these rules. The definitive position in relation to a specific case would be determined by the wording of the contract between the seller and the purchaser. If any individual requires a more definitive view of the stamp duty treatment of a particular transaction, he or she can contact Revenue’s National Stamp Duty Office (NSDO). Contact details for the NSDO are available on the Revenue website at www.revenue.ie/en/contact-us/customer-service-contact/stamp-duty.aspx.