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7 2001

FINANCE ACT, 2001

PART 5

Stamp Duties

Interpretation (Part 5).

201. — In this Part “Principal Act” means the Stamp Duties Consolidation Act, 1999 .

Amendment of section 58 (security for future advances, how to be charged) of Principal Act.

202. —(1) Section 58 of the Principal Act is amended—

(a) in subsection (2) by the substitution of “£200,000” for “£20,000” in each place where it occurs, and

(b) by the substitution of “€254,000” for “£200,000” (being inserted by paragraph (a) of this subsection) in each place where it occurs.

(2) (a) Subsection (1)(a) shall apply and have effect in relation to instruments executed on or after 26 January 2001.

(b) Subsection (1)(b) shall apply and have effect in relation to instruments executed on or after 1 January 2002.

Repeal of section 60 (short-term life insurance policies) of Principal Act.

203. — (1) Section 60 of the Principal Act is repealed.

(2) Subsection (1) shall apply and have effect in relation to instruments executed and policies of life insurance varied on or after 1 January 2001.

Amendment of section 79 (conveyances and transfers of property between certain bodies corporate) of Principal Act.

204. —(1) Section 79 of the Principal Act is amended—

(a) in subsection (7) by the substitution in paragraph (b) of “subsections (3) and (4)” for “subsection (3)”, and

(b) in subsection (5) by the substitution in paragraph (a) of “subsections (3) and (4)” for “subsection (3)”.

(2) (a) Subsection (1)(a) shall apply and have effect in relation to instruments executed on or after 15 February 2001.

(b) Subsection (1)(b) shall apply and have effect in relation to instruments executed on or after 6 March 2001.

Dublin Docklands Development Authority.

205. —The Principal Act is amended by the substitution of the following for section 99:

“99.—(1) In this section ‘wholly-owned subsidiary’ has the meaning assigned to it by section 9 of the Taxes Consolidation Act, 1997 (as amended by the Finance Act, 2001).

(2) Stamp Duty shall not be chargeable on any instrument under which any land, easement, way-leave, water right or any right over or in respect of the land or water is acquired by the Dublin Docklands Development Authority or any of its wholly-owned subsidiaries.”,

Transfer of site to child.

206. —(1) Chapter 1 of Part 7 of the Principal Act is amended by the insertion of the following section after section 83:

“83A.—(1) In this section—

‘site’, in relation to an instrument of conveyance, transfer or lease, includes any interest in land but does not include the site of a building which at the date of that instrument—

(a) was used or was suitable for use as a dwelling or for another or other purposes, or

(b) was in the course of being constructed or adapted for use as a dwelling or for another or other purposes.

(2) Stamp Duty shall not be chargeable on any conveyance, transfer or lease of a site to which this section applies.

(3) This section applies to any instrument which operates as a conveyance, transfer or lease of a site and which contains a statement, in such form as the Commissioners may specify, certifying—

(a) that the person becoming entitled to the entire beneficial interest in the site is a child of the person or of each of the persons immediately theretofore entitled to the entire beneficial interest in the site,

(b) that at the date of the instrument the value of that site does not exceed £200,000 and that the transaction thereby effected does not form part of a larger transaction or of a series of transactions whereby property with a value in excess of £200,000 is conveyed, transferred or leased to that child,

(c) that the purpose of the conveyance, transfer or lease is to enable that child to construct a dwellinghouse on that site which will be occupied by that child as his or her only or main residence, and

(d) that the transaction thereby effected is the first and only conveyance, transfer or lease of a site for the benefit of that child from either or both of the parents of that child which contains the certificate specified in this section.

(4) Subsection (2) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.

(5) The furnishing of an incorrect statement within the meaning of subsection (3) shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 1078 of the Taxes Consolidation Act, 1997 .”.

(2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 6 December 2000 subject to the substitution in subsection (3)(b) of section 83A (inserted by subsection (1)) of “€254,000” for “£200,000”, in each place where it occurs, for instruments executed on or after 1 January 2002.

Amendment of section 86 (certain loan stock) of Principal Act.

207. —(1) Section 86 of the Principal Act is amended in paragraph (b) by the substitution of “or Bord Gáis Éireann” for “Bord Gáis Éireann or Irish Telecommunications Investments p.l.c.”.

(2) Subsection (1) shall have effect as respects instruments executed on or after 15 February 2001 but only in relation to loan stock issued on or after 15 February 2001.

Rent-a-room, etc.

208. —(1) The Principal Act is amended—

(a) in section 91—

(i) by the substitution in subparagraph (ii) of subsection (2)(b) of the following:

“no person—

(I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

(II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period, and”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period, and”, and

(ii) by the substitution in subsection (2)(c) of “some person, other than a person referred to in clause (I) or (II) of subsection (2)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

(b) in section 92—

(i) by the substitution in subparagraph (ii) of subsection (1)(b) of the following:

“no person—

(I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

(II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”, and

(ii) by the substitution in subsection (2) of “some person, other than a person referred to in clause (I) or (II) of subsection (1)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

(c) in section 92A—

(i) by the substitution in subparagraph (ii) of subsection (2)(b) of the following:

“no person—

(I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

(II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”, and

(ii) by the substitution in subsection (3) of “some person, other than a person referred to in clause (I) or (II) of subsection (2)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

and

(d) in section 92B—

(i) by the substitution in subparagraph (ii) of subsection (3)(b) of the following:

“no person—

(I) other than a person who, while in such occupation, derives rent or payment in the nature of rent in consideration for the provision, on or after 6 April 2001, of furnished residential accommodation in part of the dwellinghouse or apartment concerned, or

(II) other than by virtue of a title prior to that of the purchaser,

will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or of any part of it, during that period.”,

for “no person, other than by virtue of a title prior to that of the purchaser, will derive any rent or payment in the nature of rent for the use of that dwellinghouse or apartment, or any part of it, during that period.”,

(ii) by the substitution in subsection (4) of “some person, other than a person referred to in clause (I) or (II) of subsection (3)(b)(ii)” for “some person, other than by virtue of a title prior to that of the purchaser”,

(iii) by the substitution in paragraph (a) of subsection (8)—

(I) of “separation, a decree of divorce, a decree of nullity or a deed of separation” for “separation or a decree of divorce”, and

(II) of “that decree or the execution of that deed of separation by both spouses to that marriage” for “that decree”,

(iv) by the substitution in subparagraph (i) of subsection (8)(a) of “subparagraph (ii)” for “paragraph (b)”,

(v) by the substitution in subparagraph (ii) of subsection (8)(a) of “the decree of the date of the execution of the deed of separation by both spouses to that marriage” for “the decree” in each place where it occurs, and

(vi) by the substitution in paragraph (b) of subsection (8) in the definition of “decree of judicial separation” of “the State;” for “the State.” and by the insertion of the following after that definition:

“‘decree of nullity’ means a decree granted by the High Court declaring a marriage to be null and void or any decree to like effect that was granted under the law of a country or judisdiction other than the State and is recognised in the State.”.

(2) (a) Paragraphs (a)(i), (a)(ii), (b)(i), (b)(ii), (c)(i), (c)(ii), (d)(i), and (d)(ii) of subsection (1) shall apply and have effect in relation to instruments executed on or after 6 December 2000.

(b) Paragraph (d)(iii), (v) and (vi) of subsection (1) shall apply and have effect in relation to instruments executed on or after 15 June 2000.

(c) Paragraph (d)(iv) of subsection (1) shall apply and have effect in relation to instruments executed on or after 15 February 2001.

Amendment of Chapter 2 of Part 7 of Principal Act.

209. —(1) Chapter 2 of Part 7 of the Principal Act is amended by the insertion of the following section after section 92B:

“Residential property investor relief.

92C.—(1) The amount of stamp duty chargeable under or by reference to paragraphs (1) to (6) of 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’ or clauses (i) to (vi) of paragraph (3)(a) of the heading ‘LEASE’, as the case may be, in Schedule 1 on any instrument to which this section applies shall be reduced where—

(a) paragraph (1) or (2) or clause (i) or (ii) applies, to an amount equal to three-ninths,

(b) paragraph (3) or clause (iii) applies, to an amount equal to four-ninths,

(c) paragraph (4) or clause (iv) applies, to an amount equal to five-ninths,

(d) paragraph (5) or clause (v) applies, to an amount equal to six-ninths,

(e) paragraph (6) or clause (vi) applies, to an amount equal to seven and one half-ninths,

of the amount which would otherwise have been chargeable but where the amount so obtained is a fraction of £1 that amount shall be rounded up to the nearest £.

(2) This section shall apply to any instrument which contains a statement, in such form as the Commissioners may specify, certifying that the instrument—

(a) is one to which section 29 or 53 applies, or

(b) gives effect to the purchase of a dwellinghouse or apartment on the erection of that dwellinghouse or apartment and that section 29 or 53 do not apply.”.

(2) Subsection (1) shall have effect as respects instruments executed on or after 27 February 2001 subject to the substitution in subsection (1) of section 92C (inserted by subsection (1)) of “down to nearest €” for “up to the nearest £”, for instruments executed on or after 1 January 2002.

Approved voluntary body.

210. —(1) The Principal Act is amended by the insertion of the following section after section 93:

“93A.—(1) Stamp duty shall not be chargeable on any conveyance, transfer or lease of land to a voluntary body, approved by the Minister for the Environment and Local Government under section 6 of the Housing (Miscellaneous Provisions) Act, 1992 , for the purposes of the Housing Acts, 1966 to 1998.”.

(2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 15 February 2001.

National Building Agency Limited.

211. —(1) The Principal Act is amended by the insertion of the following section after section 106:

“106A.—(1) Stamp duty shall not be chargeable on any conveyance, transfer or lease of land to the National Building Agency Limited for the purposes of the Housing Acts, 1966 to 1998.”.

(2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 26 January 2001.

Certain policies of insurance.

212. —(1) The Principal Act is amended by the insertion of the following section after section 110:

“110A.—(1) This section shall apply to a policy of insurance, being insurance of a class specified in Part A of Annex I to the European Communities (Life Assurance) Framework Regulations, 1994 (S.I. No. 360 of 1994), which—

(a) provides for periodic payments to an individual in the event of loss or diminution of income in consequence of ill health, or

(b) provides for the payment of an amount or amounts to an individual in consequence of ill health, disability, accident or hospitalisation.

(2) Stamp duty shall not be chargeable under or by reference to the Heading ‘POLICY OF INSURANCE other than Life Insurance where the risk to which the policy relates is located in the State.’ in Schedule 1 on any policy of insurance to which this section applies.”.

(2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 1 January 2001.

Amendment of Schedule 1 to Principal Act.

213. —(1) Schedule 1 to the Principal Act is amended—

(a) by the substitution under the Heading “MORTGAGE, BOND, DEBENTURE, CONVENANT (except a marketable security) which is a security for the payment or repayment of money which is a charge or incumbrance on property situated in the State other than shares in stocks or funds of the Government or the Oireachtas.” of “£200,000” for “£20,000” in each place where it occurs,

(b) by the substitution of “€254,000” for “£200,000” (inserted by paragraph (a)) in each place where it occurs, and

(c) by the deletion of the Heading “POLICY OF LIFE INSURANCE made for a period exceeding 2 years where the risk to which the policy relates is located in the State.” and the provision under that Heading.

(2) (a) Subsection (1)(a) shall apply and have effect in relation to instruments executed on or after 26 January 2001.

(b) Subsection (1)(b) shall apply and have effect in relation to instruments executed on or after 1 January 2002.

(c) Subsection (1)(c) shall apply and have effect in relation to instruments executed and policies of life insurance varied on or after 1 January 2001.

Amendment of section 2 (commencement (Part 1)) of Finance (No. 2) Act, 2000.

214. Section 2 of the Finance (No. 2) Act, 2000 , is amended in subsection (2) by the substitution of “31 July 2001” for “31 January 2001”.