- 19 October 2020
- Posted by: Roisin Bennett
- Category: Residential and Mixed Use Developments
Extension on the Residential Refund Scheme for developers
In announcing the Budget for 2021, the Government have extended The Stamp Duty Residential Development Refund Scheme (“the Scheme”).
The Scheme was due to expire on 31 December 2021. It will now be extended to operations commenced by 31 December 2022. The time allowed between commencement and completion of a qualifying project is being extended from 24 months to 30 months. Therefore, the qualifying project must be completed by 30 June 2025.
The Scheme is available to developers who construct residential property on non-residential land. The maximum refund that can be claimed is:-
|Where stamp duty paid at rate of 7.5%||Eleven fifteenths of stamp duty paid|
|Where stamp duty paid at rate of 6%||Two thirds of stamp duty paid|
Note stamp duty on non residential property changed in Budget 2020 effective on conveyances executed on or after 9 October 2019.
There are certain criteria that must be met to avail this refund as well as clawback provisions, which need to cross checked in each case.
For assistance on this topic or any other landlord and tenant topic, please contact Roisin Bennett at email@example.com or your usual Reddy Charlton contact.