Single Seniors Can Now Claim ABSD Refund For Replacement Property of Lower Value

As announced on 16 Feb 2024 during Budget 2024 by then Finance Minister Lawrence Wong, single Singapore Citizens (SC) aged 55 and above can now apply for refund of Additional Buyer’s Stamp Duty (ABSD) which was paid upon the purchase of a second private property, provided certain conditions are met.

This is to help single seniors who are right-sizing their homes easily transition from existing homes to a lower value home without the financial burden of a 20% ABSD payment against the new property.

This privilege was previously accorded only to married couples when purchasing a replacement matrimonial private property. However, one notable difference is that married couples do not have to purchase a lower value property, hence, right-sizing is not a requirement. You can read more about it on IRAS website: Remission of ABSD for a Married Couple

For single seniors, we reiterate here the conditions in summary that need to be met in order to claim ABSD refund from IRAS:

• ABSD has to be paid on the second residential property;
• Each first residential property is solely owned by a single SC aged 55 and above, or with single SCs aged 55 and above who are immediate family members;
• The owners of each first residential property need to be the owners of the second residential property. Any additional owners purchasing the second residential property with the owners of each first residential property must also be single SCs aged 55 and above who are immediate family members;
• The buyer(s) do not own more than one residential property each at the point of purchasing the second residential property, and have not purchased or acquired any other residential property since the purchase of the second residential property;
• The buyer(s) disposes the first residential property(s) (whether co-owned or separately owned) within six months after the date of purchase of the second property for completed property, or the issue date of the Temporary Occupation Permit (TOP)/Certificate of Statutory Completion (CSC), whichever is earlier, if the property was uncompleted at the point of purchase;
• There should be no change of ownership in the second residential property at the time of the sale of each first residential property;
• The value of the second residential property is less than the value of each of the first residential property(s) sold; and
• The application for refund of ABSD is made within six months after the date of sale of the first residential property(s).

For more details regarding these conditions, please see IRAS website: Purchase of second residential property by single SC seniors

In the case where more than one party is involved in the transaction, here are some possible scenarios: