Finance Act 2022
|
Repayment of stamp duty in certain circumstances | ||
|
68. (1) The Principal Act is amended, in Chapter 1 of Part 7— | ||
(a) by the insertion of the following sections after section 83D: | ||
“Repayment of stamp duty under affordable dwelling purchase arrangements | ||
83DA. (1) In this section— | ||
‘Act of 2021’ means the Affordable Housing Act 2021 ; | ||
‘direct sales agreement’ has the same meaning as it has in Part 2 of the Act of 2021; | ||
‘electronic means’ has the same meaning as it has in section 917EA of the Taxes Consolidation Act 1997 ; | ||
‘eligible applicant’ has the same meaning as it has in Part 2 of the Act of 2021; | ||
‘housing authority’ has the same meaning as it has in the Housing (Miscellaneous Provisions) Act 1992; | ||
‘relevant instrument’ means an instrument that has been stamped in accordance with— | ||
(a) paragraph (1) 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) of the heading in Schedule 1 titled ‘LEASE’; | ||
‘residential unit’ means residential property situated in the State comprising an individual dwelling. | ||
(2) This subsection applies where, in the 12-month period commencing on the day after the date a relevant instrument effecting the acquisition of a residential unit is executed, the following conditions are satisfied: | ||
(a) the accountable person enters into a direct sales agreement with a housing authority for the direct sale, to eligible applicants nominated by the housing authority, of dwellings specified in the agreement, one of which dwellings is the residential unit, and | ||
(b) the residential unit is conveyed or transferred to an eligible applicant on the sale of the residential unit by the accountable person to the eligible applicant in accordance with the terms of the agreement referred to in paragraph (a). | ||
(3) Where subsection (2) applies in respect of a residential unit, subject to the other provisions of this section, the stamp duty paid on the relevant instrument concerned may be repaid in accordance with this section. | ||
(4) 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 (2) 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 until such time as the conditions in subsection (2) have been satisfied. | ||
(5) 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 (4), | ||
(b) not carry interest, and | ||
(c) not be made pursuant to a claim made after the expiry of 4 years after the date the condition specified in subsection (2)(b) has been satisfied. | ||
(6) 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. | ||
(7) 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. | ||
(8) 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 date of execution of the instrument effecting the conveyance or transfer, as the case may be, referred to in subsection (2)(b), and | ||
(b) the records referred to in section 128A shall include— | ||
(i) a copy of the direct sales agreement concerned, and | ||
(ii) a copy of the contract for sale, in relation to the residential unit concerned, between the accountable person and the eligible applicant. | ||
(9) Where a repayment has been made under this section and it is subsequently found that a declaration made in accordance with subsection (4)— | ||
(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. | ||
Repayment of stamp duty in respect of certain residential units | ||
83DB. (1) In this section— | ||
‘Act of 1991’ means the Child Care Act 1991; | ||
‘Act of 1992’ means the Housing (Miscellaneous Provisions) Act 1992 ; | ||
‘Act of 2007’ means the Health Act 2007; | ||
‘Act of 2009’ means the Housing (Miscellaneous Provisions) Act 2009; | ||
‘Act of 2021’ means the Affordable Housing Act 2021 ; | ||
‘approved housing body’ means a body approved of or standing approved of, under, or for the purposes of, section 6 of the Act of 1992; | ||
‘children’s residential centre’ has the same meaning as it has in Part VIII of the Act of 1991; | ||
‘cost rental dwelling’ has the same meaning as it has in Part 3 of the Act of 2021; | ||
‘designated centre’ has the same meaning as it has in the Act of 2007; | ||
‘electronic means’ has the same meaning as it has in section 917EA of the Taxes Consolidation Act 1997 ; | ||
‘housing authority’ has the same meaning as it has in the Act of 1992; | ||
‘qualifying date’, in relation to a relevant residential unit, means the date on which the unit becomes a qualifying relevant residential unit; | ||
‘qualifying lease’ means a lease, for a term of not less than 10 years, in respect of a relevant residential unit entered into with a housing authority or an approved housing body for the purpose of the provision of social housing support; | ||
‘qualifying relevant residential unit’ means a relevant residential unit in respect of which a condition specified in subsection (3), (4), (5) or (6) is satisfied; | ||
‘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; | ||
‘social housing support’ has the same meaning as it has in the Act of 2009. | ||
(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) The condition specified in this subsection is that, in the 24-month period commencing on the day after the date a relevant instrument effecting the acquisition of a relevant residential unit is executed, a person enters into a qualifying lease in respect of the relevant residential unit. | ||
(4) The condition specified in this subsection is that, 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. | ||
(5) The condition specified in this subsection is that, in the 18-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 registered as a designated centre under Part 8 of the Act of 2007. | ||
(6) The condition specified in this subsection is that, in the 18-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 registered as a children’s residential centre under Part VIII of the Act of 1991. | ||
(7) Where a condition specified in subsection (3), (4), (5) or (6) is satisfied, stamp duty paid on a relevant instrument effecting the acquisition of the relevant residential unit concerned may be repaid in accordance with the provisions of this section. | ||
(8) 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. | ||
(9) 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 a condition specified in subsection (3), (4), (5) or (6), as the case may be, has been satisfied, | ||
(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. | ||
(10) 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 (9), | ||
(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. | ||
(11) Where, in relation to a claim for repayment under this section, the Commissioners are of the opinion that the requirements of the 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. | ||
(12) 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. | ||
(13) An accountable person shall be liable to pay to the Commissioners some or all of the stamp duty that had been repaid to the accountable person under subsection (10) (and that stamp duty to which the foregoing liability attaches is referred to in this section as a ‘clawback’)— | ||
(a) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (3) was satisfied, where the lease concerned is terminated before the expiry of 10 years after the qualifying date, | ||
(b) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (5) was satisfied, where the relevant residential unit concerned is registered as a designated centre under Part 8 of the Act of 2007 for a period of less than 10 years after the qualifying date, or | ||
(c) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (6) was satisfied, where the relevant residential unit concerned is registered as a children’s residential centre under Part VIII of the Act of 1991 for a period of less than 10 years after the qualifying date. | ||
(14) The amount of a clawback shall be determined by the formula— | ||
A x [(10 - Y) /10] | ||
where— | ||
A is the amount of stamp duty repaid that was attributable to the qualifying relevant residential unit, | ||
Y is the number of years (including a part of a year) that have expired, after the qualifying date, on the date on which, as the case may be— | ||
(a) the lease referred to in subsection (3) is terminated, | ||
(b) the relevant residential unit ceases to be registered as a designated centre under Part 8 of the Act of 2007, or | ||
(c) the relevant residential unit ceases to be registered as a children’s residential centre under Part VIII of the Act of 1991. | ||
(15) Interest shall be payable on the clawback calculated in accordance with section 159D from the date on which the repayment was made to the date of payment of the clawback to the Commissioners. | ||
(16) Where an accountable person fails to pay the clawback, the Commissioners may make an assessment of the amount of the stamp duty concerned as if the failure to pay were a failure to deliver a return under section 20(2). | ||
(17) Where there is more than one accountable person in relation to an instrument and a clawback, they shall be liable jointly and severally whether or not an assessment is made. | ||
(18) Where a repayment has been made under this section and it is subsequently found that a declaration made in accordance with subsection (9)— | ||
(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. | ||
(19) Where a person is liable to pay, in relation to a qualifying relevant residential unit, a clawback under subsection (13) and a penalty under subsection (18), the total liability of the person under those subsections shall be limited to the greater of the clawback under subsection (13) and the penalty under subsection (18). | ||
(20) 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— | ||
(i) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (4) was satisfied, the cost rental designation (within the meaning of Part 3 of the Act of 2021), | ||
(ii) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (5) was satisfied, certificates of registration issued under section 50(3) of the Act of 2007, or | ||
(iii) in a case in which the stamp duty was repaid pursuant to a claim made on the basis that the condition specified in subsection (6), the notifications, if any, issued under section 61(6)(b) of the Act of 1991. | ||
(21) Notwithstanding any enactment or rule of law, the Commissioners may, by notice in writing, request— | ||
(a) the Minister for Housing, Local Government and Heritage, | ||
(b) the Minister for Health, or | ||
(c) the Minister for Children, Equality, Disability, Integration and Youth, | ||
to provide them with such information as is in the possession or control of the Minister concerned as the Commissioners may reasonably require for the purposes of verifying— | ||
(i) in the case of the Minister for Housing, Local Government and Heritage, in respect of a claim for repayment made on the basis that the condition specified in subsection (3) was satisfied— | ||
(I) the execution of the lease referred to in subsection (3), or | ||
(II) the termination of the lease referred to in that subsection, | ||
(ii) in the case of the Minister for Health, in respect of a claim for repayment made on the basis that the condition specified in subsection (5) was satisfied, whether the relevant residential unit is, or was, registered as a designated centre under Part 8 of the Act of 2007, and | ||
(iii) in the case of the Minister for Children, Equality, Disability, Integration and Youth, in respect of a claim for repayment made on the basis that the condition specified in subsection (6) was satisfied, whether the relevant residential unit is, or was, registered as a children’s residential centre under Part VIII of the Act of 1991. | ||
(22) Where the Commissioners make a request under subsection (20), the Minister concerned shall provide such information as may be specified in the notice within the period specified in the notice which period, in any case, shall not be less than 30 days. | ||
(23) Taxpayer information within the meaning of section 851A(1) of the Taxes Consolidation Act 1997 may be disclosed by a Revenue officer to the Minister concerned for the purposes of enabling the Minister to comply with a request made under subsection (20).”, | ||
and | ||
(b) by the repeal of sections 83E and 83F. | ||
(2) Subsection (1) shall come into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions. |