Stamp Duty Flashcards
When does Stamp Duty apply?
• On written documents
• Document must be executed in Ireland or relates
to Irish property
What does the purchaser pay stamp duty on, in terms of property?
The purchaser pays stamp duty on the market value of the property
When is Stamp Duty paid/not paid?
Stamp Duty is always paid on land, buildings, goodwill and debtors.
To avoid stamp duty on other assets transfer by simple delivery
What are the general exemptions from Stamp Duty?
• Transfer of Irish Government stock
• Disposals between spouses – just need to be
married or civil partners
• No stamp duty on death
• The transfer of intellectual property such as
patents, trademarks, brands and copyrights is
exempt. The transfer of goodwill is not exempt.
• Liquidation – if assets pass from a liquidator to the
shareholders on liquidation no stamp duty.
What are the conditions to qualify for Young Trained Farmer exemption?
• Under 35 years of age
• Must hold a relevant agricultural qualification. If
you get an agricultural qualification within four
years of obtaining the land you can get a refund
of your stamp duty once all other conditions are
met.
• A transferee must intend to spend at least 50% of
his or her normal working time farming the land
for a period of a least five years from the date of
transfer.
• A transferee must retain ownership of the land for
a period of at least five years from the date of
transfer.
• Must submit a business plan to Teagasc (Irish
government body that deals with farm business
plans).
How can Young Trained Farmer exemption be clawed back?
The relief is clawed back if the land is sold within five years and not replaced within a year.
What is the Maximum relief under EU regulation for young trained farmer exemption?
Maximum relief under EU regulation for young trained farmer exemption along with two income tax reliefs is €70,000.
What conditions must be met to qualify for relief on transfer of Farmland between related persons?
• Must be related to the transferor, AND
• Must farm the land, or lease it to someone that
will farm it , for a minimum of six years
If farming the land:
• Must hold a specified qualification, or obtain one
within 4 years from the date you get the land, OR
• Spend at least 50% of time farming the land
If leasing the farm, instead of farming it:
• The person must hold a specified qualification, or
obtain one within 4 years from the date you get
the land, OR
• Spend at least 50% of time farming the land
What are the rules on Stamp Duty in relation to trusts?
The transfer of property by the settlor into a trust is liable to stamp duty. Stamp duty will be liable on the market value of the property when it enters the trust.
There will be no stamp duty when the property leaves the trust.
What are the rules on Group relief for stamp duty?
Where there is a 90% shareholding relationship between two companies, any transfer of assets between the companies will be exempt from stamp duty. There is no residence requirement in relation to the two companies.
However if the 90% relationship is broken within two years of the transfer stamp duty becomes payable on the full value of the asset transferred. A merger or liquidation does not count as breaking the 90% group relationship.
What are the payment and filing dates for Stamp Duty?
Paper return – 30 days from when the document was executed (signed by both parties)
E-filing – 44 days from when the document is executed
What are the fines and penalties for late filing and payment?
Late payment – interest of 8% pa or .0219% per day
Late filing – Surcharge of 5% of the unpaid duty up to €12,695 filed 44 days but before 92 days. 10% of the unpaid duty up to €63,485 filed 92 days and beyond.
