Stamp Duty and shares, stocks and marketable securities

• Example 1

  David owns 210 shares in XYZ Ltd, an Irish company.

  David sells the shares to you in a single transaction for €5,600.

  David executes seven stock transfer forms, each of which transfers 30 shares valued at €800 to you.

  Although the consideration in each instrument is less than €1,000, each instrument is part of a larger transaction. You must:

  • file seven Stamp Duty returns (one for each stock transfer form)

  and

  • tick the box on each return stating that the transaction is part of a larger transaction.

  You pay Stamp Duty on each stock transfer form.

Special rules apply to shares deriving their value, or the greater part of their value, from immovable property. The immovable property must be non-residential property. These rules are explained in Certain property deriving its value from immovable property.

Electronic transfers

Shares may be transferred to you through CREST. If they are, Stamp Duty is collected through CREST. You do not file a Stamp Duty return.

Agreements relating to shares

You pay Stamp Duty on written agreements relating to the transfer of a beneficial interest in shares.

• Example 2

  John owns shares in XYZ Ltd. His name is on the share register of XYZ Ltd as being the owner of the shares. He agrees to sell the shares to Mary. After the sale Mary does not want her name to be on the share register.

  In the share purchase agreement John agrees to hold the shares as Mary's nominee.

  Mary must pay Stamp Duty on the agreement.