FA 20 changes: Stamp duty

Mar 15, 2021

Several stamp duty Tax and Duty Manuals now reflect changes made by Finance Act 2020.

  • Paragraph 6.3 of Section 31C: Shares deriving value from immovable property situated in the State reflects Revenue’s view that, although section 31C does not specially disapply section 79 or 80, the anti-avoidance provisions in section 31C take precedence over these sections. Revenue is prepared to administratively allow the section 79 exemption in relation to conveyances and transfers of shares deriving value from non-residential property between group companies that are very closely associated. Revenue is not prepared to commit to administratively allowing the section 80 exemption in all cases. Cases where both sections 31C and 80 might apply will therefore be decided by Revenue on the particular facts and circumstances on a case-by-case basis.
  • Paragraph 4 of Section 31D: Cancellation schemes of arrangement reflect the provisions in section 31C that, where both sections can apply to an arrangement, section 31C takes priority over section 31D;
  • Section 81C: Farm consolidation relief – Paragraph 1 reflects the extension of farm consolidation relief by a further 2 years to 31 December 2022 (subject to a Commencement Order).
  • Section 83D: Residential development refund scheme – Paragraphs 2.3, 2.4, 2.7, 3.4 and 3.7 reflect an extension from 2 years to 30 months in the timeline allowed to complete a development, and an extension by a further year to 31 December 2022 in the time allowed to commence a development under the scheme.
  • Section 126AA: Bank levy – Paragraph 3 now reflects an increase in the rate of the bank levy for the year 2021 to maintain the fixed annual yield of €150 million.
  • Schedule 1 to SDCA 1999: Stamp duties on instruments – Paragraph 2.5 now reflects the extension of ‘consanguinity relief’ for a further three years to 31 December 2023.

Part 4 of Finance Act 2020 provides for the relevant amendments to these sections of the SDCA 1999. 

See eBrief No. 055/21 for further details.