Stamp Duty Site And Building Agreement

Construction contract (developer`s agreement to build a house in Joe on the site): €113,500.00. When selling land with existing buildings, stamp duty was payable on the total purchase price (and for SDLT, the position is the same); This is due to the fact that the buildings are legally considered part of the land and therefore part of the land transaction. Under the stamp duty regime, it was possible to save the tax on the purchase of a new building by purchasing the bare land and concluding a separate construction contract with the seller and the developer under whom the developer would install the building. The courts have upheld the effectiveness of this structure for stamp duty purposes (in The Prudential Assurance Company Limited in 1992) and revenue acceptance of this structure was presented in SP8/93. “It is possible, in a number of cases, to structure a transaction in such a way as to avoid stamp duty.” If you have paid VAT on your home, you will only have to pay stamp duty on the base price of the house – before adding VAT…

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