knowledge | 19 October 2017 |
Finance Bill 2018: 6% stamp duty – Transitional measures
As expected, the Finance Bill published today, if enacted as initiated, applies the new 6% rate of stamp duty to conveyances on sale or transfer of commercial real estate and certain other property where the instrument is executed on or after 11 October. Importantly however, the Finance Bill includes a provision that will, when enacted, provide that the former lower rate of 2% may apply to a conveyance on sale or transfer executed on or before 1 January 2018 provided there was a binding contract in place on or before 10 October 2017 and the instrument contains a certificate to that effect. There will be some work to be done to ensure instruments are executed by the end of this year, but this is very good news for buyers who had entered into contracts on or before 10 October 2017.
Anyone requiring further advice or assistance on what this means for them should contact any member of our Tax or Real Estate groups or their usual contact in McCann FitzGerald.
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.