Commercial property stamp duty loophole to be closed
Late change to Finance Bill to combat avoidance of 6% duty on commercial property sales
Move follows a recommendation from the Revenue Commissioners, presumably sparked by evidence of people structuring transactions to avoid the new commercial property stamp duty rate which rose to 6 per cent. Photograph: Joe St Leger
A late change to the Finance Bill has been introduced to try to stop people who are selling commercial property from avoiding the new higher 6 per cent stamp duty rate by making the transfer via a company sale.
A much lower 1 per cent stamp duty rate applies to the sale of shares and the measure is designed to stop people setting up artificial transactions involving the placing of property assets into companies, with the intention of making the transfer via a share sale.