The Finance Bill has brought some clarity to the application of the 6% “mansion tax” rate of stamp duty to residential property. The increased rate of stamp duty on bulk purchases of residential units has also been included in the Bill.

Application of 6% rate to residential property

• The new 6% rate will apply to consideration over €1.5 million when the consideration is attributable to two or less apartments in an “apartment block” (one which has three or more apartments in it).
• For consideration that is attributable to three or more apartments in an “apartment block”, the previous rules will continue to apply so that a rate of stamp duty of 1% will be chargeable on consideration up to €1 million and 2% on the balance.
• The new 6% rate will also apply to consideration over €1.5 million when it is attributable to “residential property” which does not fall within the “bulk purchase” provisions for certain property, i.e. the purchase of ten or more residential units other than apartments in apartment blocks within twelve months. Therefore, it appears that the 6% rate may apply to the value of consideration over €1.5 million on the purchase of multiple units of residential property that are not apartments in an apartment block or subject to the “bulk purchase” rules, e.g. the purchase of up to nine houses or three or more apartments in different apartment blocks.

The new rate on bulk purchases

The rate of stamp duty on “bulk purchases” of certain residential units has increased from 10% to 15%. This rate applies when ten or more residential units (or interests deriving their value therefrom) are acquired in a twelve-month period. This rate does not apply to apartments in apartment blocks.

Transitional Measures

These new rules will affect instruments executed on or after 2 October 2024, subject to a transition period of three months for instruments executed before 1 January 2025 where the instrument contains a prescribed statement, certifying that the instrument was executed solely in pursuance of a binding contract entered into before 2 October 2024.