Stamp Duty – Resting on Contract

Finance Bill  2013 provides for the introduction of these anti avoidance provisions and deletes the similar 2008 provisions which never commenced. The provisions will not apply where there is a binding written contract in place prior to 13 February 2013. There are three situations covered as follows:

• A charge to Stamp Duty will arise in respect of a contract or agreement for the sale of an estate or interest in land in the State where 25% or more of the consideration has been paid under the contract or agreement. The charge will not arise where a stamp duty return is filed with Revenue in respect of a conveyance or transfer of the land within 30 days of the payment of the relevant amount of the consideration.

• A charge to stamp duty will arise where the holder of an estate or interest in land in the State enters into an agreement with another person under which that other person is allowed to carry out development on the land and 25% or more of the market value of the land is paid to the landowner. The charge will arise within 30 days after the relevant amount has been paid.
• Lastly an agreement for a lease for more than 35 years will be liable to stamp duty as if it were an actual lease made for the term and the consideration provided for in the agreement where 25% or more of the consideration has been paid.

Contact OSK Tax for more information.