Revenue Note for Guidance

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Revenue Note for Guidance

CHAPTER 7

Releases or Renunciations of any property, or of any right or interest in any property

Section 63 Letters of renunciation

Summary

This section charges the renunciation of a letter of allotment to stamp duty on the same basis as if it were an actual share transfer. The section applies, however, only to stocks and shares where the company concerned has none of its shares quoted either on the official list or the unlisted securities market of a recognised stock exchange1.

Details

(1) “share” and “unquoted company” are self-explanatory.

(2) An instrument which releases or renounces a right under a letter of allotment to any share in an unquoted company is chargeable to stamp duty under the “RELEASE or RENUNCIATION of any property, or of any right or interest in any property” head of charge in Schedule 1. The release or renunciation is treated as if it were a release of property consisting of stocks or marketable securities.

1 For stamp duty purposes the Revenue Commissioners interpret the phrase “recognised stock exchange” to mean not only the Irish Stock Exchange but any stock exchange operating in another country which—

  • is recognised by the appropriate regulatory authorities in that other country, and
  • has substantially the same level of recognition in that country as the Irish Stock Exchange has in this country.

Relevant Date: Finance Act 2014