Revenue eBrief No. 135/20
06 July 2020
Stamp duty:shares deriving value from immovable property and cancellation schemes of arrangement
Two new stamp duty manuals have been published on sections 31C (Shares deriving value from immovable property situated in the State) and 31D (Cancellation schemes of arrangement) Stamp Duties Consolidation Act 1999.
Section 31C was introduced by Finance Act 2017 in tandem with the increase in the non-residential rate of stamp duty. It is designed to deter the type of tax avoidance arrangement where the company itself is sold (1% rate of duty on shares) instead of a direct sale of the company's property (7.5% rate of duty on non-residential property).
Section 31D was introduced by Finance Act 2020. It imposes a stamp duty charge (1% rate of duty on shares) on the court-approved acquisition of companies involving the cancellation of existing shares and the issue of new shares as consideration (known as 'cancellation schemes of arrangement').