Finally it has fallen to the PRA to bring some clarity to the transitional arrangements for our stamp duty changes. We can pay the reduced 2% amount and make our return, but Revenue won't issue a stamp certificate. Instead we will have to send letters to the PRA with our deeds, asking for time. If the stamp certificate issues and arrives in to the PRA by 31 January 2018, everything is fine. If not, your dealing will be rejected and you are back to square one. A whole rigmarole that could easily have been avoided with some basic consultation. Phew!
A word of warning - expect a late surprise from the minister in this Finance Act. The numbers are not adding up for his predictions and property holding SPVs could be targeted.
The lost art of stamp duty planning could be in vogue again soon!
Stamp Duty – Non-Residential Property Transactions Eligible for 2% rate under Transitional relief measures – Legal Office Notice 2 of 2017 Revenue Position The rate of stamp duty on certain property acquisitions was increased from 2% to 6% on the 10th October 2017. The provisions were subsequently included in Finance Bill 2017, which was published on the 19th October 2017, but these will not become law until the Finance Bill is enacted. This increase was made subject to transitional measures for the retention of the 2% rate in cases where the property acquisition had reached an advanced stage. Revenue has now put arrangements in place for these transitional measures.