The Minister announced a new exemption from the 1 percent stamp duty on the acquisition of shares in Irish registered companies with a market capitalisation of below €1 billion. In addition, several stamp duty reliefs have been extended.
Stamp duty exemption for acquisition of shares
A new exemption from the 1 percent stamp duty on acquisitions of shares in Irish registered companies is being introduced for companies a market capitalisation of below €1 billion. The companies must be admitted for trading on a regulated market, a multi-lateral trading facility, or an equivalent third country market. The exemption is set to expire on 31 December 2030. It is expected to cost €24 million per annum.
As a consequence, the existing stamp duty exemption for shares in Irish registered companies traded on the Euronext Growth Market (formerly the Enterprise Securities Market) will be removed.
Farm Consolidation Relief
Farm Consolidation Relief is being extended to 31 December 2029. The relief provides that a 1 percent rate of stamp duty is charged on the net difference between the value of land sold and land acquired as part of a Teagasc certified farm consolidation. In addition, the scope of the relief is being broadened to include non-commercial woodland/forestry. These measures will be subject to separate commencement orders due to the need to notify the EU Commission appropriately. It is estimated to cost €1.5 million per annum.
Young Trained Farmer Relief
The Young Trained Farmer relief is being extended to 31 December 2029. The relief provides a full exemption from stamp duty on the transfer of farmland, subject to certain conditions being met. The extension will be subject to a commencement order due to the need to notify the EU Commission. The extension of the relief is expected to cost €19.8 million per annum.
Residential Development Stamp Duty Refund Scheme
The Residential Development Stamp Duty Refund Scheme is being extended to 31 December 2030. The scheme provides for a partial repayment of the Stamp Duty paid on the acquisition of land where the land is subsequently developed for residential purposes subject to a number of conditions.
To improve its effectiveness the time limits that apply for acquisition to commencement and commencement to completion are being extended from 30-months to 36-months where an application for a stamp duty refund is made in respect of a large-scale residential development.
In addition, to improve efficiencies in delivery of new housing, a full Stamp Duty refund may be claimed in respect of a multi-phase development at the commencement of the first phase of that development. The extension of the relief is expected to cost €19.8 million per annum.
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