Paying the Duty
Instruments that are chargeable
You must file a Stamp Duty return in order to pay Stamp Duty. You pay the Stamp Duty as part of the process of filing the return.
You must also file a Stamp Duty return to claim certain exemptions or reliefs from Stamp Duty. For more information, see Stamp Duty exemptions and reliefs.
For information on instruments that are chargeable, see When is an instrument liable to Stamp Duty?.
Instruments that are not chargeable
You do not file a return for an instrument that is not chargeable to Stamp Duty.
Stamp Duty is chargeable on instruments that transfer property to you as a gift. However, certain instruments which transfer property are not treated as gifts. For example, Stamp Duty is not chargeable on instruments that transfer property:
- from a trustee or nominee to the beneficiary
- from the beneficial owner to a trustee or nominee of the same beneficial owner
- from one trustee or nominee to another trustee or nominee where there is no change in the beneficial owner.
Stamp Duty is not chargeable on instruments that transfer property to you under a will or on intestacy.
A fixed rate of Stamp Duty used to apply to instruments that transferred property where the transfer did not result from a sale or gift. The fixed duty was abolished for instruments executed on or after 2 April 2007. Therefore, Stamp Duty is no longer chargeable on these instruments.
Rectifying mistake(s) found in instrument(s)
After the instrument has been executed, you may find a mistake in it. For example, there may be a mapping error or a typing error. The instrument may not correctly describe the property the parties had agreed to transfer.
Another instrument, usually called a Deed of Rectification, may be executed to correct the mistake.
Stamp Duty is not chargeable on Deeds of Rectification that only correct mistakes made in the original instrument.
However, in certain circumstances, a Deed of Rectification will give rise to a Stamp Duty charge. For example, Stamp Duty is chargeable if the Deed of Rectification increases the consideration payable under the original instrument. In this case Stamp Duty is chargeable on the increase. Another example is where the Deed of Rectification is for consideration, even if that consideration is nominal, for example, €1.
It may happen that an instrument is called a Deed of Rectification but it is actually an instrument that transfers property. If that is the case, Stamp Duty is chargeable.
John agreed to sell land to Mary for €100,000 in 2000. They signed a contract for sale on 4 June 2000. Mary paid over the €100,000 to John. However, no instrument transferring the land was executed. Mary commenced farming the land.
In October 2018, Mary realised that the land had never been transferred to her. An instrument was executed to transfer the land to her. The instrument is called a Deed of Rectification of Legal Title.
Mary believes that this deed is not liable to Stamp Duty. She is the beneficial owner of the land. The sole purpose of the deed was to allow her legal ownership of the land to be registered in the Land Registry. The deed is liable to Stamp Duty because it operates to transfer property on the sale of that property. It does not matter that the sale took place 18 years earlier.
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