CHAPTER 4

Leases

Section 50 Agreements for not more than 35 years charged as leases

This section provides that an agreement for a lease for a term not exceeding 35 years or for any indefinite term is to be treated as if it were an actual lease.

The Revenue Commissioners are prepared to give consideration to making a refund of stamp duty, paid on an Agreement for Lease, in circumstances where the Lease agreed to be granted is not actually granted. Applications for a refund will be considered by the Revenue Commissioners, on a case by case basis, having regard to the particular facts of the individual case. The following confirmations will be required where a refund application is made to the Revenue Commissioners:

• the Agreement for Lease has been cancelled by the parties prior to it being substantially performed (i.e. no rent or other consideration has been paid, or any benefit derived, directly or indirectly, on foot of the Agreement for Lease at any time),
• a Lease, giving effect to the Agreement for Lease, has not been executed,
• the tenant has not entered into possession of the property the subject of the Agreement for Lease,
• the Agreement for Lease has not been made use of for any purpose by the parties,
• the cancellation of the Agreement for Lease has been effected for bona fide commercial reasons, and
• the execution and cancellation of the Agreement for Lease does not form part of a scheme or an arrangement, the purpose of which is the avoidance of any tax or duty.

Relevant Date: Finance Act 2014