Finance Act 2025
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Amendment of section 83D of Principal Act (repayment of stamp duty where land used for residential development) | ||
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79. (1) The Principal Act is amended— | ||
(a) in section 83D— | ||
(i) in subsection (1)— | ||
(I) in paragraph (a)— | ||
(A) in the definition of “commencement notice”, by the substitution of the following paragraph for paragraph (a): | ||
“(a) a commencement notice within the meaning of article 8 of the Regulations of 1997, or”, | ||
(B) by the substitution of the following definition for the definition of “planning permission”: | ||
“ ‘planning permission’ means a permission within the meaning of the Planning and Development Act 2000 or, as the case may be, the Planning and Development Act 2024 ;”, and | ||
(C) by the insertion of the following definition: | ||
“ ‘large-scale residential development’ has the same meaning as it has in section 2 of the Planning and Development Act 2000 or, from the date on which section 82 of the Planning and Development Act 2024 comes into operation, as it has in that section;”, | ||
and | ||
(II) by the substitution of the following paragraph for paragraph (b): | ||
“(b) References in this section to ‘relevant residential development’ shall be construed— | ||
(i) in a case in which a claim for a repayment under subsection (8) is, pursuant to subsection (7)(b), made in respect of such of the construction operations as for the time being are being carried out pursuant to a particular commencement notice, as references to the residential development that comprises those construction operations, or | ||
(ii) in any other case, as references to the entire residential development concerned.”, | ||
(ii) in subsection (3)— | ||
(I) by the substitution of the following paragraph for paragraph (a): | ||
“(a) Subject to the provisions of this section, stamp duty paid on an instrument may be repaid in accordance with this section in relation to the land if construction operations on the land commence pursuant to a commencement notice within the period commencing on the date of execution of the instrument and ending— | ||
(i) where the residential development concerned is a large-scale residential development, on the date that is 36 months after the date of execution, or | ||
(ii) in any other case, on the date that is 30 months after the date of execution.”, | ||
and | ||
(II) by the deletion of paragraph (c), | ||
(iii) by the insertion of the following subsection after subsection (3): | ||
“(3A) (a) Notwithstanding subsection (3)(a), the stamp duty repaid under this section shall be liable to the clawback provided for in subsection (12) if— | ||
(i) the relevant residential development specified in a commencement notice is not completed within the period commencing on the date of the sending by a building control authority, in accordance with article 10(2) or 20A(3)(b), as the case may be, of the Regulations of 1997, of an acknowledgment in relation to that notice (in this subparagraph referred to as the ‘first-mentioned date’) and ending— | ||
(I) where the residential development concerned is a large-scale residential development, on the date that is 36 months after the first-mentioned date, or | ||
(II) in any other case, on the date that is 30 months after the first-mentioned date, and | ||
(ii) when completed, the relevant residential development on the land, being the land to which that relevant residential development relates, is not such that— | ||
(I) at least 75 per cent of the total surface area of that land is occupied by dwelling units, or | ||
(II) the gross floor space of dwelling units amounts to at least 75 per cent of the total surface area of that land, | ||
and subparagraphs (i) and (ii) are subsequently referred to in this section as the conditions for the avoidance of a clawback under this paragraph. | ||
(b) If— | ||
(i) the residential development concerned was carried out in a phased manner such that there were 2 or more commencement notices in respect of the construction operations on the land, and | ||
(ii) the repayment claimed under subsection (8) was not made in respect of such of the construction operations that were carried out pursuant to a particular commencement notice pursuant to subsection (7)(b), | ||
the reference in paragraph (a)(i) to a commencement notice shall be construed as a reference to the last of those commencement notices.”, | ||
(iv) in subsection (4)(a), by the substitution of “(3A)(a)(ii)” for “(3)(c)(ii)”, | ||
(v) in subsection (5)(a)— | ||
(I) in subparagraph (ii), by the substitution of “subsection (3A)(a)” for “paragraph (c) of that subsection”, and | ||
(II) by the substitution of “the period specified in subsection (3)(a), (3A)(a)(i) or (4)(b), as the case may be,” for “the period of 30 months specified in subsection (3)(a) or the period of 30 months specified in subsection (3)(c)(i) or (4)(b)”, | ||
(vi) in subsection (7)(b), by the deletion of “, without prejudice to the accountable person’s right to defer making a claim until completion of the residential development concerned,”, | ||
(vii) in subsection (8), by the substitution of the following paragraph for paragraph (e): | ||
“(e) not be made— | ||
(i) until such time as construction operations have commenced pursuant to a commencement notice, and | ||
(ii) notwithstanding anything in subsection (7)(b), after the expiry of 4 years following the commencement of the period specified in subsection (3A)(a)(i) or, as the case may be, subsection (4)(b).”, | ||
(viii) in subsection (9), by the substitution of “under subsection (3A)(a)” for “under paragraph (c) of subsection (3)”, | ||
(ix) in subsection (10), by the substitution of the following paragraph for paragraph (c): | ||
“(c) not be made where, were repayment to be made, the accountable person would be immediately liable to pay to the Commissioners the stamp duty repaid in accordance with subsection (12)(a).”, | ||
(x) in subsection (12), by the substitution of “the conditions specified in paragraph (a) of subsection (3A) for the avoidance of a clawback under that paragraph” for “the conditions specified in paragraph (c) of subsection (3) for the avoidance of a clawback under that paragraph”, and | ||
(xi) in subsection (18), by the substitution of “31 December 2030” for “31 December 2025”, | ||
and | ||
(b) in section 159A(2)(v), by the substitution of “section 83D(8)(e)(ii)” for “section 83D(10)(c)”. | ||
(2) The amendments effected by subsection (1) shall not apply to any claim for repayment of stamp duty made under section 83D of the Principal Act prior to the coming into operation of this section. |