The most common charge to stamp duty that affects individuals is the stamp duty on the purchase of houses and apartments. The amount of stamp duty payable depends on the price paid (or the market value where the price paid is less than market value) for the property.
Stamp duty payable = €14,000
[(€1,000,000 @ 1%) + (€200,000 @ 2%)]
Stamp duty payable = €1,250
[€125,000 @ 1%]
Aggregation applies in determining the stamp duty liability where a transaction forms part of a larger transaction or of a series of transactions involving residential property. The stamp duty liability is calculated on the basis of the aggregate consideration. The duty is then apportioned between the separate properties that are transferred by separate instruments and the apportionment is pro rata to the consideration for each property.
Two houses are purchased for a total of €1,200,000 (€800,000 for House A and €400,000 for House B).
Stamp duty is calculated on the aggregate consideration of €1,200,000.
Aggregate Consideration = €1,200,000
Stamp duty payable: €14,000
[Apportionment of duty between House A and House B is as follows:
House A (€14,000 x €800,000) / €1,200,000 = €9,333
House B (€14,000 x €400,000) / €1,200,000 = €4,667]
Non-residential property includes all types of property other than residential property, stocks or marketable securities and policies of insurance or life insurance.
Stamp duty payable: €1,800
[€90,000 @ 2%]
Purchase of a site
Where an individual purchases a site with no connected agreement to build a house or apartment, the transfer of the site is chargeable at the appropriate rate for non-residential property.
Consideration : €50,000
Stamp duty payable: €1,000
[€50,000 @ 2%]
Where an individual purchases a site in connection with, or as part of, an arrangement to build a house or apartment on that site then stamp duty will be charged on the aggregate amount of the site cost and the building cost at the appropriate residential property rate.
Site with connected building agreement for a house or apartment
Site cost €50,000
Building cost €165,000
Aggregate cost: €215,000
Stamp duty payable: €2150
[€215,000 @ 1%]
Where a transaction relates to a mixed property, the consideration must be apportioned between the residential and non-residential elements. The residential property is not aggregated with the non-residential portion for the purposes of determining the appropriate rate of stamp duty.
The Apportionment form (PDF, 17KB) is available on the Revenue website.
Shop with connected apartment
Apportioned: Shop = €900,000 + Apartment = €300,000
Stamp duty payable: €21,000
[(€900,000 @ 2%) + (€300,000 @ 1%)]
VAT and stamp duty
Stamp duty is assessed on the VAT exclusive consideration, Sections 48 and 56 of the Stamp Duties Consolidation Act 1999 provide that the chargeable consideration for stamp duty purposes is to exclude any VAT chargeable under Section 2 of the VAT Act 1972 on the sale or lease.
Where VAT is included in the consideration, it should be deducted before calculating the charge or rate of stamp duty.
A transfer by way of gift is chargeable the same way as a transfer on sale, with the market value of the property being substituted for the consideration.
A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease.
The duty chargeable on the premium is at the rate for residential or non-residential property as appropriate.
|Residential and Non-Residential Property||Rate|
|Lease for a term not exceeding 35 years or for any indefinite term||1% of the average annual rent|
|Lease for a term exceeding 35 years but not exceeding 100 years||6% of the average annual rent|
|Lease for a term exceeding 100 years||12% of the average annual rent|
A lease of a house or apartment for a term not exceeding 35 years or for any indefinite term and where the rent does not exceed €30,000 per annum is exempt from stamp duty.
Updated: November 2012