Stamp Duty

Residential Property

Stamp Duty rates for resident property did not change in the recent budget.

First time buyers who are owner occupiers will continue to be exempt from stamp duty on new residential property up to 125 square meters. Partial relief will continue to apply where such property exceeds 125 square meters.

Financial Cards

Changes are being made to stamp duties applicable to ATM and Debit cards. The rate changes are summarised as follows:

The changes for ATM and Debit cards will take effect for the year ending 31 December 2008, the duty for which is normally collected from bank customers by financial institutions early this year.

There is no change in the stamp duty on credit cards and charge cards which remains at €30.

Bills of Exchange (including cheques)

The stamp duty rate on bills of exchange is being increased from 30 cent to 50 cent in respect of bills of exchange drawn on or after 15 October 2008. In the case of cheques, the increase will apply in respect of cheques applied by financial institutions to customers on or after 15 October 2008.

Deposit Interest Retention Tax (DIRT) and Tax Rates on Life Assurance Policies and Investment Funds

The rates of retention tax that apply to deposit interest, together with the rates of tax that apply to a) life assurance policies and b) investment funds, are being increased by 3 percentage points to 23% and 26% respectively. The increased rates will apply to payments including deemed payments, made on or after 1 January 2009. Full details in relation to DIRT will be included in the Finance Bill.

Should you require any further information, please contact Susan Lennon.

Rates of Duty for Residential Property

The rates of duty applicable for residential property (whether new or second hand) are as follows:

Table 1: Rates of duty for deeds executed on or after 5th November 2007

* Transactions, where the consideration (or the aggregate consideration) does not exceed €127,000, are exempt from stamp duty.

Stamp Duty on Non-Residential Property

Non-Residential Property is any property other than residential property, stocks or marketable securities or policies of insurance. It includes (but is not limited to) sites, offices, factories, other business premises, shops, public houses, land and goodwill attaching to a business.

The top rate of stamp duty for non-residential property was reduced from 9% to 6% in respect of instruments executed on or after 15 October 2008 and Revenue will, on an administrative basis until the enactment of the Finance Act 2009, give immediate effect to the application of the reduced rate.

The revised rate structure, which will also apply to the premium payable under a lease of non-residential property, is set out in the second table below.

For instruments executed after 15 October 2008

Email: slennon@annebrady.ie