[space size=10] Charge to tax
Stamp duty is charged on deeds, for example, a transfer, lease or mortgage (s 2).
Stamp duty is also charged, in the form of a levy, on insurance premiums (s 125), credit cards (s 114), and bank cards (s 123).
[space size=10] Rates of tax (deeds)
A transfer of land or buildings is charged:
(a) non-residential property, at 2%,
(b) residential property, at
(i) 1% on the first €1,000,000 of consideration, and at
(ii) 2% on the remainder.
A transfer for less than full value (for example, a gift) is charged on the market value (s 30).
Stamp duty is charged on both the rent and the premium.
Premium: Stamp duty is charged at the same rate as a transfer.
Rent: If the lease is for a term which is indefinite, or for less than 35 years, the rate is 1% of the average annual rent. But if the lease relates to a house or apartment, and the annual rent is less than €30,000, the lease is exempt.
If the lease is for a term between 35 and 100 years, the rate is 6% of the average annual rent.
If the lease is for a term exceeding 100 years, the rate is 12% of the average annual rent (Schedule 1).
Transfers of marketable shares or securities
Stamp duty is charged at 1% of the price paid for the shares. This rate also applies to electronic share trading transactions within the CREST system (Schedule 1).
A transfer for less than full value (for example, a gift of shares) is charged at market value (s 30).
Fixed duty is charged (Schedule 1) at €12.50 on the following documents:
Appointment of new trustee
Declaration of trust
Duplicate or counterpart
Transfer where no beneficial interest passes
It is charged at €0.50 on cheques.
[space size=10] Exemptions
The following transactions are exempt:
(a) A transfer from one spouse to the other (s 96). The exemption also applies to a transfer made under separation, divorce or nullity proceedings.
(b) A transfer from one company to another within a 90% corporate group (s 79).
(c) A transfer of farm land to a young trained farmer (before 31 December 2015) (s 81).
(d) A transfer from one company to another as part of a corporate reconstruction or amalgamation (s 80).
(e) A transfer of land to a charity (s 82).
(f) A transfer of woodlands; duty is not charged on the value of the trees growing on the land (s 95).
(g) A transfer of government stocks, aircraft and ships, wills, sheriff warrants, and State-owned property (Schedule 1).
[space size=10] Particulars delivered
A deed must be stamped with a “particulars delivered” (PD) stamp if it involves:
(a) a transfer of a fee simple,
(b) the grant of a lease for a term exceeding 30 years,
(c) assignment of a lease where the unexpired term exceeds 30 years.
The exceptions to this rule are:
(a) the creation of a joint tenancy between spouses, and
(b) conveyances and leases of houses to or by a housing authority.
[space size=10] Self assessment
The person liable to pay the stamp duty is the accountable person. This means the person to whom the property is transferred, leased, or mortgaged (s 1).
[space size=10] Revenue powers
The Revenue Commissioners are responsible for the administration of stamp duties (s 137).
A deed must be stamped within 30 days of its execution.
Interest is charged at 0.0219% for each day the duty is unpaid.
An understatement in the value of property gives rise to a surcharge (s 15) of:
(a) 25%, if the undercharge was 15% – 30%,
(b) 50%, if the undercharge was 30% – 50%, and
(c) 100%, if the undercharge was greater than 50%.
Failure to pay stamp duty on time gives rise to a penalty (s 14) of €30 plus:
(a) 10% of unpaid duty if less than six months late,
(b) 20% of unpaid duty if over six months but less than 12 months late,
(c) 30% of unpaid duty if over 12 months late.
See INCOME TAX (Penalties) as regards enforcement of penalties.
[space size=10] Appeals
A person aggrieved by:
(a) a Revenue decision as to the value of land or buildings, may appeal to the Land Values Reference Committee,
(b) an assessment, you may appeal to the Appeal Commissioners (s 21).