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13 1994

FINANCE ACT, 1994

PART IV

Stamp Duties

Definitions ( Part IV ).

102. —In this Part—

the Act of 1891” means the Stamp Act, 1891;

the First Schedule” means the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Act of 1891.

Amendment of section 103 (provision relating to voluntary disposition inter vivos, etc.) of Finance Act, 1991.

103. —(1) Section 103 of the Finance Act, 1991 , is hereby amended in subsection (1)—

(a) by the substitution in paragraph (a) of “15 per cent.” for “10 per cent.” and of “25 per cent.” for “50 per cent.”,

(b) by the substitution in paragraph (b) of “equal to 50 per cent. of the total duty” for “equal to the total duty”, and

(c) by the substitution in paragraph (c) of “the total duty” for “double the total duty”.

(2) Subsection (4) of section 103 of the Finance Act, 1991 , is hereby repealed.

(3) This section shall have effect as respects instruments executed after the passing of this Act.

Amendment of section 105 (valuation of property chargeable with stamp duty) of Finance Act, 1991.

104. —(1) Section 105 of the Finance Act, 1991 , is hereby amended in subsection (1) by the substitution of “section 15” for “sections 15, 16 and 17”.

(2) This section shall have effect as respects instruments executed after the passing of this Act.

Amendment of section 206 (exemption from stamp duty of certain stocks and marketable securities) of Finance Act, 1992.

105. Section 206 of the Finance Act, 1992 , is hereby amended—

(a) by the addition of the following paragraph after paragraph (a):

“(aa) units in a collective investment scheme which is incorporated or otherwise formed under the law of a territory outside the State:

Provided that such conveyance or transfer of units does not relate to—

(i) any immovable property situate in the State or any right over or interest in such property, or

(ii) any stocks or marketable securities of a company, other than a company which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989 , which is registered in the State, or”,

(b) by the deletion of the words “and which are dealt in and quoted on a recognised stock exchange” in paragraph (c),

(c) by the substitution of the following paragraph for paragraph (ii) of the proviso to paragraph (c):

“(ii) any stocks or marketable securities of a company, other than a company which is a collective investment undertaking within the meaning of section 18 of the Finance Act, 1989 , which is registered in the State,”,

and

(d) by the addition of the following provisions after the existing provisions (as amended by paragraphs (a), (b) and (c)):

“and in paragraph (aa)—

collective investment scheme’ means a scheme which is an arrangement made for the purpose, or having the effect, solely or mainly, of providing facilities for the participation by the public or other investors, as beneficiaries, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever;

units’ includes shares and any other instruments granting an entitlement to shares in the investments or income of, or receive a distribution from, a collective investment scheme.”.

Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

106. Section 106 of the Finance Act, 1993 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) In this section ‘loan capital’ means any debenture stock, bonds or funded debt, by whatever name known, or any capital raised which is borrowed or has the character of borrowed money, whether in the form of stock or in any other form.”,

(b) by the substitution of the words “on the transfer of loan capital of a company or other body corporate” for the words “on the issue or transfer of” in subsection (2), and

(c) by the addition of the following subsection after subsection (2):

“(3) Stamp duty shall not be chargeable on the issue, whether in bearer form or otherwise, of—

(a) any Government loan within the meaning assigned by section 134 (10) of the Finance Act, 1990 , or

(b) any other loan capital which is not a charge or incumbrance upon property situate in the State.”.

Particulars to be delivered in cases of transfers and leases.

107. —(1) It shall be the duty of the transferor or lessor, on the occasion of any transfer of the fee simple of any land or of any interest in land or on the grant of any lease of any land for a term exceeding 14 years (whether the transfer or lease is on sale or as a voluntary disposition inter vivos), to present to the Commissioners such particulars in relation to such class or category of transfer or lease as they may prescribe by regulations and, without prejudice to the generality of the foregoing, the regulations may make provision in relation to all or any of the following matters—

(a) the form in which the particulars are to be delivered;

(b) the time limits within which the particulars are to be delivered;

(c) the manner in which the land is to be described or classified;

(d) the furnishing of tax reference numbers of the parties to the instrument.

(2) For the purposes of section 14 of the Act of 1891 and notwithstanding anything in section 12 of that Act, any transfer or lease to which regulations made pursuant to subsection (1) apply shall not be deemed duly stamped unless it is stamped with a stamp denoting that all particulars requested by the Commissioners have been delivered.

(3) If the transferor or lessor fails to comply with this provision, such person shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500.

(4) The provisions of this section shall apply to any instrument executed on and from the date on which the regulations under subsection (1) shall first have effect.

(5) Section 4 of the Finance (1909-10) Act, 1910, shall cease to have effect other than in respect of any instrument executed before the date on which regulations under subsection (1) first have effect.

(6) In this section “transferor”, “lessor”, “fee simple”, “interest”, “land” and “lease” have the same meanings, respectively, as they have in section 41 of the Finance (1909-10) Act, 1910.

Stamp duty and value-added tax.

108. —(1) As respects any instrument executed on or after the 11th day of April, 1994, the consideration or rent chargeable under the Heading—

(a) “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”, or

(b) “LEASE

in the First Schedule shall exclude any value-added tax chargeable under section 2 of the Value-Added Tax Act, 1972 , on such sale or lease.

(2) Any instrument of sale or lease stamped prior to the 11th day of April, 1994 (whether or not the Commissioners have expressed their opinion with reference to it under the provisions of section 12 of the Act of 1891) shall, notwithstanding that it does not bear stamp duty in respect of any value-added tax charged under section 2 of the Value-Added Tax Act, 1972 , on such sale or lease, as respects such unpaid duty, be deemed duly stamped in accordance with the law in force at the time when it was first executed.

Right of appeal of persons dissatisfied with assessment.

109. —(1) The Act of 1891 is hereby amended by the substitution of the following section for section 13:

“13.—(1) In this section—

Appeal Commissioners’ has the meaning assigned to it by section 156 of the Income Tax Act, 1967 ;

appellant’ means a person who appeals to the Appeal Commissioners under subsection (2) of this section;

assessment’ means an expression by the Commissioners of their opinion pursuant to section 12 of this Act and includes a decision of the Commissioners relating to the value, for the purposes of this Act or under Chapter II of Part IV of the Finance Act, 1973 , of any stocks, shares or other securities which are not dealt with on a stock exchange and where such a decision leads to such an expression by the Commissioners of their opinion.

(2) Any person who is dissatisfied with the assessment of the Commissioners and who is an accountable person in relation to such assessment may, on payment of duty in conformity therewith, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court on a point of law.

(3) A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of such intention.

(4) Subject to the provisions of this section, the provisions of Part XXVI (Appeals) of the Income Tax Act, 1967 , shall, with any necessary modifications, apply as they apply for the purpose of income tax.”.

(2) Section 19 of the Finance Act, 1923 , shall cease to apply to the valuation for the purposes of the Act of 1891 of any stocks, shares or other securities which are not dealt in on a stock exchange.

(3) Section 36 of the Finance Act, 1972 , and paragraph (a) of section 74 of the Finance Act, 1973 , are hereby repealed.

(4) This section shall have effect as respects instruments executed after the passing of this Act.

Exemption from stamp duty on certain transfers to Irish Stock Exchange.

110. —(1) In this section—

the Exchange” means a limited company incorporated or to be incorporated in the State to operate as the Irish Stock Exchange;

International Stock Exchange” means the International Stock Exchange of the United Kingdom and Republic of Ireland Limited and its subsidiaries.

(2) Stamp duty shall not be chargeable on any agreement, transfer, conveyance, assignment or lease whereby any business, assets or liabilities owned by the International Stock Exchange in connection with the carrying on of its business as a stock exchange is or are transferred or agreed to be transferred, in whole or in part, to the Exchange:

Provided that such agreement, transfer, conveyance, assignment or lease arises from or is in consequence of the establishment in the State of a stock exchange as a separate legal entity to the International Stock Exchange.

Exemption from stamp duty of stocks, etc., of foreign governments.

111. —Stamp duty shall not be chargeable on any conveyance or transfer of stocks or other securities of the government of any territory outside the State.

Relief from stamp duty in respect of transfers to young trained farmers.

112. —(1) In this section and the Sixth Schedule

land” means agricultural land and includes such farm buildings, farm houses and mansion houses (together with the lands occupied therewith) as are of a character appropriate to the land;

Teagasc” means Teagasc—The Agricultural and Food Development Authority;

an interest in land” means an interest which is not subject to any power (whether or not contained in the instrument) on the exercise of which the land, or any part of or any interest in the land, may be revested in the person from whom it was conveyed or transferred or in any person on behalf of such person;

young trained farmer” means a person in respect of whom it is shown to the satisfaction of the Commissioners—

(a) that such person had not attained the age of 35 years on the date on which the instrument, as respect which relief is being claimed under this section, was executed, and

(b) (i) that such person is the holder of a qualification set out in the Sixth Schedule and, in the case of a qualification set out in subparagraph (c), (d), (e), (f) or (g) of paragraph 3 or paragraph 4 of the said Schedule, is also the holder of a certificate issued by Teagasc certifying that such person has satisfactorily attended a course of training in farm management, the aggregate duration of which exceeded 80 hours, or

(ii) (I) that such person has satisfactorily attended full-time a course at a third-level institution in any discipline for a period of not less than 2 years’ duration, and

(II) is the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours,

or

(iii) if born before the 1st day of January, 1968, that such person is the holder of a certificate issued by Teagasc certifying that such person—

(I) has had farming as the principal occupation for a period of not less than 3 years, and

(II) has satisfactorily attended a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours:

Provided that where Teagasc certifies that any other qualification corresponds to a qualification which is set out in the Sixth Schedule , the Commissioners shall, for the purposes of this section, treat that other qualification as if it were the corresponding qualification so set out.

(2) The amount of stamp duty chargeable under or by reference to the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” in the First Schedule on any instrument to which this section applies shall be reduced by an amount equal to two-thirds of the amount which would otherwise have been chargeable:

Provided that where the amount so obtained is a fraction of a pound that amount shall be rounded up to the next pound.

(3) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where—

(a) the instrument contains a certificate that the provisions of this section apply, and

(b) a declaration made in writing by the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping, confirming, to the satisfaction of the Commissioners, that it is the intention of such person, or each such person, for a period of not less than 5 years from the date of execution of the instrument to—

(i) spend not less than 50 per cent. of that person's normal working time farming the land, and

(ii) retain ownership of the land, and

(c) the identifying reference number, known as the Revenue and Social Insurance (RSI) Number, of the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping:

Provided that this section shall apply where the property is conveyed or transferred into joint ownership where all the joint owners are young trained farmers or where any of the joint owners is a spouse of another joint owner who is a young trained farmer.

(4) Where this section would have applied to the instrument, except for the fact that a person to whom the land is being conveyed or transferred is not a young trained farmer on the date when the instrument was executed, by reason of not being the holder of one of the qualifications, or an equivalent qualification, specified in the Sixth Schedule or, in the case of the requirement in paragraph (b) (ii) (I) of the definition of “young trained farmer” in subsection (1), not having attended full-time for the required 2 years’ duration, but that such person had completed on that date at least one academic year of the prescribed course leading to an award of such qualification, or the course prescribed in paragraph (b) (ii) (I) of the said definition, then—

(a) if such person afterwards becomes a holder of such qualification, or satisfactorily attends such course full-time for a period of 2 years, within a period of 3 years from the date of execution of the instrument, the Commissioners shall, upon production of the stamped instrument to them within 6 months after the date when such person became the holder of such qualification, or completed the required 2 years’ attendance on such course, and upon furnishing satisfactory evidence of compliance with the provisions of this subsection, the declaration and the Revenue and Social Insurance (RSI) Number, as provided for in subsection (3), cancel and refund, without payment of interest thereon, such duty as would not have been chargeable had this section applied to the instrument when it was first presented for stamping, and

(b) the period of 5 years provided for in subsection (3) in relation to the declaration to be made by such person, as it applies to normal working time, shall be reduced by the period of time that elapsed between the date of the instrument and the date on which such person became the holder of such qualification or completed the required 2 years’ attendance on such course.

(5) An instrument to which this section applies and which is stamped with an amount of duty less than the amount which, but for the provisions of this section, would be chargeable thereon shall be deemed not to be duly stamped unless the Commissioners have expressed their opinion thereon in accordance with section 12 of the Act of 1891.

(6) (a) If and to the extent that any person to whom land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed—

(i) disposes of such land, or part of such land, within a period of 5 years from the date of execution of the instrument, and

(ii) does not replace such land with other land within a period of 1 year from the date of such disposal,

then such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners a fine equal to the difference between the amount of the duty which would have been charged in the first instance if the land disposed of had been conveyed or transferred by an instrument to which this section had not applied and the amount of duty which was actually charged, together with interest on the amount of such difference as may so become payable charged at a rate of 1.25 per cent. per month or part of a month from the date when the instrument was executed to the date the fine is remitted:

Provided that, where relief under this section was allowed in respect of any instrument, a disposal by a young trained farmer of part of the land to a spouse for the purpose of creating a joint tenancy in the land, or where the instrument conveyed or transferred the land to joint owners, a disposal by one joint owner to another of any part of the land, shall not be regarded as a disposal to which the provisions of this subsection apply, but upon such disposal, such part of the land shall be treated for the purposes of this subsection as if it had been conveyed or transferred immediately to the spouse or other joint owner by the instrument in respect of which relief from duty under this section was allowed in the first instance.

(b) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made, or a certificate contained in the instrument, in accordance with the provisions of subsection (3) was—

(i) untrue in any material particular which would have resulted in the relief afforded by this section not being granted, and

(ii) was made, or was included, knowing same to be untrue or in reckless disregard as to whether it was true or not,

then any person who made such a declaration, or where a false certificate has been included, the person or persons to whom the land is conveyed or transferred by the instrument, jointly and severally, shall be liable to pay to the Commissioners as a fine an amount equal to the difference between 125 per cent. of the duty which would have been charged on the instrument in the first instance had all the facts been truthfully declared and certified and the amount of duty which was actually charged, together with interest on the amount of such difference as may so become payable charged at a rate of 1.25 per cent. per month or part of a month from the date when the instrument was executed to the date the fine is remitted:

Provided that—

(I) a person shall not be liable to more than one fine under paragraph (b),

(II) a person shall not be liable to a fine under paragraph (a) if and to the extent that such person has paid a fine under paragraph (b), and

(III) a person shall not be liable to a fine under paragraph (b) if and to the extent that such person has paid a fine under paragraph (a).

(7) This section shall have effect as respects instruments executed on or after the 7th day of January, 1994, and on or before the 31st day of December, 1996.