Section 31A Resting in contract

This section provides that a charge to stamp duty will arise on a contract or agreement for the sale of an estate or interest in land in the State, where 25 per cent or more of the consideration for the sale has been paid to the holder of the estate or interest. The charge will arise where a stamp duty return has not been filed and stamp duty paid in respect of a conveyance or transfer of the lands concerned within 30 days after that amount of consideration has been paid.

The charge under section 31A applies to instruments executed on or after 13 February 2013. However, the charge will not apply where an instrument is executed solely in pursuance of a binding contract or agreement entered into before 13 February 2013.

Details

(1) A contract or agreement for the sale of an estate or interest in land in the State is chargeable to stamp duty as if it were a conveyance or transfer of the estate or interest where a payment which amounts to, or payments which together amount to, 25 per cent or more of the consideration for the sale has been paid.

(2) The charge under subsection (1) does not apply where, within 30 days of the date of the payment of 25% or more of the consideration,

• (2)(a) a stamp duty return is filed in relation to a conveyance or transfer made in conformity with the contract or agreement for sale, and
• (2)(b) the stamp duty chargeable on the conveyance or transfer has been paid to the Revenue Commissioners.

(3) Where stamp duty has been paid on a contract or agreement in accordance with subsection (1), a conveyance or transfer made in conformity with such contract or agreement will not be liable to stamp duty, where a stamp duty return has been filed in relation to the conveyance or transfer, and the Revenue Commissioners will either denote the payment of the duty on the conveyance or transfer or will transfer the duty to the conveyance or transfer on production to them of the stamped contract or agreement.

(4) The Revenue Commissioners will refund any duty paid on the contract if the contract is later rescinded or annulled. ShannonWhile this section does not specify a time limit for submitting claims for refund, a 4 year time limit is provided for by section 159A from the date the contract is stamped, in respect of a valid claim for refund. Interest may arise on the refund – see section 159B.

Relevant Date: Finance Act 2014