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Extension of stamp duty refund scheme welcome but more could be done to address issues obtaining the relief

Budget 2023

The residential stamp duty refund scheme provides for a refund of stamp duty paid on the acquisition of non-residential land where that land is subsequently developed for residential purposes. The extension of the scheme until the end of 2025 is welcome, however with little in the way of substantive changes to the relief itself.

Commenting on the Budget, Joanne Whelan, Tax Partner, Deloitte said:

While the extension of the relief is welcome from our perspective, we will be watching the upcoming Finance Bill with interest to see whether amendments to the relief have been made. The relief is intended to encourage housing in more centrally located areas, and to overall encourage the construction of more housing stock for the market.

Whelan concluded

While we are of the view that the relief is an important tool to address a challenging housing market, we cannot ignore the calls from the construction industry that the conditions for obtaining the relief present difficulties and require amendment. Where no amendments are made in the Bill, these difficulties may continue for the construction industry and therefore result in a lower number of companies opting to engage in residential construction in the medium to long term.