Finance (Covid-19 and Miscellaneous Provisions) Act 2022

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Repayment of stamp duty on cost rental dwellings

14. (1) The Stamp Duties Consolidation Act 1999 is amended by the insertion of the following section after section 83E:

“83F. (1) In this section—

‘Act of 2021’ means the Affordable Housing Act 2021 ;

‘cost rental dwelling’ has the same meaning as it has in Part 3 of the Act of 2021;

‘qualifying date’, in relation to a relevant residential unit, means the date on which the unit becomes a qualifying relevant residential unit;

‘qualifying relevant residential unit’ has the meaning assigned to it by subsection (3);

‘relevant instrument’ means an instrument executed on or after 20 May 2021 that has been stamped in accordance with—

(a) paragraph (1)(b) of the heading in Schedule 1 titled ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’, or

(b) paragraph (3)(a)(i)(II) of the heading in Schedule 1 titled ‘LEASE’,

where the instrument was chargeable, in respect of the whole or part of the consideration under the instrument, to stamp duty at a rate of 10 per cent;

‘relevant residential unit’ has the same meaning as it has in section 31E.

(2) In this section, a reference to acquisition shall include a reference to acquisition by way of a conveyance, transfer, lease, instrument, contract or agreement referred to in section 31E(2).

(3) This subsection applies where, in the 6-month period commencing on the day after the date a relevant instrument effecting the acquisition of a relevant residential unit is executed, the relevant residential unit is designated as a cost rental dwelling under Part 3 of the Act of 2021 (and such a relevant residential unit designated within that period is referred to in this section as a ‘qualifying relevant residential unit’).

(4) Where subsection (3) applies, stamp duty paid on a relevant instrument may be repaid in accordance with this section.

(5) The amount of stamp duty to be repaid, in relation to a relevant instrument and a qualifying relevant residential unit, shall be determined by the formula—

A - B

where—

A is the amount of stamp duty paid on the relevant instrument, that was attributable to the qualifying relevant residential unit, and

B is the amount of stamp duty, attributable to the qualifying relevant residential unit, that would have been chargeable on the execution of the relevant instrument if the qualifying relevant residential unit had not been a relevant residential unit.

(6) A claim for a repayment under this section shall—

(a) be made by an accountable person,

(b) without prejudice to paragraph (d), be made in a form and manner specified by the Commissioners,

(c) include a declaration, in such form as the Commissioners specify, stating that subsection (3) applies,

(d) be made by electronic means and through such electronic systems as the Commissioners may make available for the time being for any such purpose, and the relevant provisions of Chapter 6 of Part 38 of the Taxes Consolidation Act 1997 shall apply, and

(e) not be made before the qualifying date concerned.

(7) Subject to the other provisions of this section, a repayment of stamp duty under this section shall—

(a) be made by the Commissioners pursuant to a claim made in accordance with subsection (6),

(b) not carry interest, and

(c) not be made pursuant to a claim made after the expiry of 4 years after the qualifying date concerned.

(8) Where, in relation to a claim for repayment, the Commissioners are of the opinion that the requirements of this section have not been met, they shall decide to refuse the claim and shall notify the claimant in writing of the decision and the reasons for it.

(9) An accountable person aggrieved by a decision to refuse a claim for repayment, may appeal to the Appeal Commissioners against the decision in accordance with section 949I of the Taxes Consolidation Act 1997 , within the period of 30 days after the date of the notification of the decision.

(10) For the purposes of this section—

(a) section 128A shall apply as if the period of 6 years referred to in subsection (4) of that section commenced on the qualifying date concerned, and

(b) the records referred to in section 128A shall include, in relation to the qualifying relevant residential unit concerned, a copy of the cost rental designation (within the meaning of Part 3 of the Act of 2021).

(11) Where a repayment has been made under this section and it is subsequently found that a declaration made in accordance with subsection (6)—

(a) was untrue in any material particular that would have resulted in a repayment, or part of a repayment, allowed by this section not being made, and

(b) was made knowing same to be untrue or in reckless disregard as to whether or not it was true,

then the person who made such a declaration shall be liable to pay to the Commissioners as a penalty an amount equal to 125 per cent of the stamp duty that would not have been repaid had all the facts been truthfully declared, together with interest charged on that amount as may so become payable, calculated in accordance with section 159D, from the date on which the repayment was made to the date the penalty is paid.”.

(2) Subsection (1) shall come into operation on the day after the date of the passing of this Act.