The Residential Development Stamp Duty Refund Scheme, introduced under the Finance Act 2017, should be extended to help mitigate rising construction costs that risk hindering much-needed residential development.
Property advisor, Savills Ireland, is calling for the extension of the scheme – which is due to expire on the 31 December 2022 – in the forthcoming budget.
The Residential Development Stamp Duty Refund Scheme was introduced under the Finance Act 2017 and provides for the refund of a portion of stamp duty paid on land that is subsequently developed for residential purposes – bringing the stamp duty rate down to a minimum of 2%.
John Swarbrigg, Development Director at Savills Ireland said: “Stamp duty on land for residential development has been charged at 2% since 2011, with a refund in place from 2017 to maintain the 2% rate. Empirical evidence suggests that when additional development costs are incurred, then these costs will be passed on to the end purchaser. To support the delivery of housing, the government should seek to maintain the effective 2% stamp duty rate.”