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Consideration

  1. Overview
  2. Leases
  3. Transfers of property
  4. VAT-exclusive consideration
  5. Consideration in a foreign currency
  6. What if you do not know the consideration?

Leases

For a lease, the consideration is usually money in the form of rent and a premium or lump sum, excluding any VAT. However, the consideration may also include:

  • shares you transfer to the landlord
  • or
  • produce or other goods you provide to the landlord.

You pay Stamp Duty on the value of the shares, produce or goods.

  • Example

    James wants to lease a building from Orla for five years.

    James does not have a lot of cash and cannot afford to pay the €20,000 premium that Orla wants.

    They agree that James will transfer shares worth €20,000 to Orla.

    A lease is executed that provides for an annual rent of €5,200 and the transfer of shares.

    James pays Stamp Duty on the average annual rent (€5,200) and on the value of the shares (€20,000).

    Orla will also pay Stamp Duty on the instrument (written document) that transfers the shares to James. Orla will pay Stamp Duty on €20,000.

Where a lease is treated as a gift, you pay Stamp Duty on a notional premium. For more information, see Gifts.

Next: Transfers of property

Published: 07 July 2023 Print this page

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