First Previous (PART III Value-Added Tax) Next (PART V Capital Acquisitions Tax)

13 1986

FINANCE ACT, 1986

PART IV

Stamp Duties

Levy on banks.

92. —(1) In this section—

assessable amount” means the amount arrived at by dividing the specified amount by twelve and deducting £10,000,000 from the quotient;

bank” means a person who, on the 1st day of September, 1985, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 ;

relevant sum”, in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency;

returns”, in relation to a bank, means the returns, entitled “MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES”, furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 16th day of January, 1985, the 20th day of February, 1985, the 31st day of March, 1985, the 17th day of April, 1985, the 15th day of May, 1985, the 30th day of June, 1985, the 17th day of July, 1985, the 21st day of August, 1985, the 30th day of September, 1985, the 16th day of October, 1985, the 20th day of November, 1985 and the 31st day of December, 1985;

specified amount”, in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 17th day of September, 1986, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of “specified amount” in subsection (1) by reference to which that specified amount was calculated.

(3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following:

(a) 0.25 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000, and

(b) 0.316 per cent. of that part of the assessable amount shown therein that exceeds £100,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £100,000,000 stamp duty of an amount equal to 0.25 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 17th day of September, 1986, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.

Levy on certain investment income.

93. —(1) In this section—

assessable amount” means the total amount of income, without any deduction whatsoever, which arises to an insurer from investments during the year 1986 and, in the case of any investment sold in that year, includes the amount by which the sale price of the investment exceeds the price for which the investment was acquired:

Provided that, for the purposes of this definition, the total amount of income which arises shall not be reduced by any amount which is deducted or withheld from the income pursuant to any of the provisions of the Tax Acts and shall, in the case of any income which gives entitlement to a tax credit, include the amount of that tax credit;

excluded property” means property derived from or representing—

(a) business carried on by the insurer outside the State;

(b) a pension fund within the meaning of section 50 of the Corporation Tax Act, 1976 ;

(c) industrial assurance business within the meaning of the Regulations;

(d) business relating to a society which is a credit union for the purposes of the Credit Union Act, 1966 ;

first statement” means a statement in writing showing an amount which is estimated by the insurer to be the equivalent of 90 per cent. of the assessable amount for that insurer;

insurer” means a person who is the holder of an authorisation within the meaning of the Regulations or is the holder of an assurance licence which is by those Regulations deemed to be an authorisation;

investments” includes property of every description other than excluded property;

Regulations” means the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984);

second statement” means a statement in writing showing an amount which is equal to the difference between the amount shown in the first statement and the assessable amount for the insurer.

(2) An insurer shall deliver to the Revenue Commissioners the first statement on or before the 1st day of November, 1986, and the second statement on or before the 30th day of June, 1987.

(3) There shall be charged on every first statement and on every second statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 9 per cent. of the amount shown in each such statement.

(4) The duty charged by subsection (3) on a first statement or a second statement delivered by an insurer pursuant to subsection (2) shall be paid by the insurer on the delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by an insurer such particulars and accounts as the Revenue Commissioners may deem necessary in relation to a first statement or a second statement required by this section to be delivered by the insurer and in relation to the assessable amount in respect of the insurer.

(6) In the case of failure by an insurer—

(a) to deliver a first statement required by subsection (2) within the time specified in that subsection,

(b) to pay, on the delivery of the first statement, an amount of duty which is not less than 85 per cent. of the duty payable in respect of the assessable amount,

(c) to deliver a second statement required by subsection (2) within the time specified in that subsection, or

(d) to pay the duty on the second statement on the delivery thereof,

the insurer shall be liable to pay by way of penalty, in addition to the duty, interest on the unpaid duty at the rate of 15 per cent. per annum from the date of the failure until the day on which the duty is paid.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purpose of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by any person.

Stamp duty on certain statements of interest.

94. —(1) (a) In this section—

corporation tax” means the tax charged by the Corporation Tax Acts;

Corporation Tax Acts” has the meaning given to it by section 155 (1) of the Corporation Tax Act, 1976 ;

relevant interest” means any interest or other distribution which—

(i) is received by a company (hereinafter in this section referred to as “the lender”) which is within the charge to corporation tax, and

(ii) is payable out of the assets of another company (hereinafter in this subsection referred to as “the borrower”) which is resident in the State for the purposes of corporation tax, in respect of a security of the borrower which is a security falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976 , and

(iii) is a distribution for the purposes of the Corporation Tax Acts;

relevant period” means the period beginning on the 30th day of January, 1986, and ending on the 31st day of July, 1986, the period of six months ending on the 31st day of January, 1987, or any subsequent period of six months ending on the 31st day of January or the 31st day of July.

(b) For the purposes of this section, any amount which, in a relevant period, is debited to a borrower's account with a lender in respect of relevant interest shall be treated as an amount received by the lender in that relevant period.

(2) A lender shall, within 30 days from the end of each relevant period, deliver to the Revenue Commissioners a statement in writing showing the amount of the relevant interest for that lender in respect of that relevant period.

(3) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 12 per cent. of the amount of the relevant interest shown therein:

Provided that, in a case where the amount of the relevant interest received by a lender in respect of a security referred to in subsection (1) is an amount which is less than what would have been received by that lender had the security yielded simple interest at the rate of 6 per cent. per annum throughout the period for which the relevant interest was payable, the stamp duty charged on the statement on the amount of the relevant interest for that security shall be an amount equal to 8 per cent. of the amount received.

(4) The duty charged by subsection (3) upon a statement delivered by a lender pursuant to subsection (2) shall be paid by the lender upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a lender such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by a lender.

(6) In the case of failure by a lender to deliver any statement required by subsection (2) within the time specified in that subsection or of failure by a lender to pay any duty chargeable on any such statement on the delivery thereof, the lender shall be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 2.5 per cent. for each month or part of a month from the expiration of the relevant period to which the statement relates until the date on which the duty is paid.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the lender.

(9) The Imposition of Duties (No. 282) (Stamp Duty on Certain Statements of Interest) Order, 1986 (S.I. No. 27 of 1986), is hereby revoked.

Stamp duty on letters of renunciation.

95. —(1) In this section—

share” includes stock;

unquoted company” means a company none of whose shares, stocks or debentures are listed in the official list of a recognised stock exchange or dealt in on an unlisted securities market recognised by such a stock exchange.

(2) Notwithstanding the provisions of section 23 of the Finance Act, 1964 , any instrument which releases or renounces or has the effect of releasing or renouncing a right under a letter of allotment, or under any other document having the effect of a letter of allotment, to any share in an unquoted company shall be chargeable to stamp duty as if it were a release or renunciation of property consisting of stocks or marketable securities by reference to the Heading “RELEASE or RENUNCIATION of any property, or of any right or interest in any property” in the First Schedule (inserted by the Finance Act, 1970 ) to the Stamp Act, 1891, and that Schedule shall be construed accordingly.

(3) The Imposition of Duties (No. 278) (Stamp Duty on Letters of Renunciation) Order, 1985 (S.I. No. 152 of 1985), is hereby revoked.

(4) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.

Stamp duty on certain instruments.

96. —(1) Where, in connection with, or in contemplation of, a sale of property, the vendor enters into—

(a) an agreement for the grant of a lease of the property for a term exceeding 35 years, or

(b) an agreement (other than a contract for the sale of the property) under which the vendor grants any other rights in relation to the property,

any conveyance or transfer, subject to the agreement, of the property by the vendor shall be charged to stamp duty as a conveyance or transfer on sale of the property for a consideration equal to the value of the property and the value shall be determined without regard to the agreement.

(2) A declaration by deed under section 65 (2) of the Conveyancing Act, 1881, to the effect that, from and after the execution of the deed, a term subsisting in land shall be enlarged, shall, where the term was created by an instrument executed within 6 years of the date of the execution of the deed, be charged to stamp duty as a conveyance or transfer on sale of that land for a consideration equal to the value of the land and that value shall be determined without regard to the said term or any part thereof.

(3) The provisions of section 50 of the Finance Act, 1979 , shall not apply to a deed which is chargeable to stamp duty under subsection (2).

(4) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.

Stamp duty on conveyances and transfers on sale of stocks and marketable securities.

97. —(1) Section 83 of the Finance Act, 1974 , shall cease to have effect and, in lieu thereof, in the case of a conveyance or transfer on sale of any stocks or marketable securities, such stamp duty shall be chargeable as would have been chargeable if that section had not been enacted.

(2) The Imposition of Duties (No. 276) (Stamp Duties on Conveyances and Transfers on Sale of Stocks and Marketable Securities) Order, 1985 (S.I. No. 146 of 1985), is hereby revoked.

(3) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.

Repayment of stamp duty on certain instruments.

98. —(1) In this section—

(a) “the First Schedule” means the First Schedule, as amended by the Finance Act, 1970 , and subsequent enactments, to the Stamp Act, 1891;

(b) the terms “approved scheme”, “participant”, “the release date” and “shares” have the meanings respectively assigned to them by section 50 of the Finance Act, 1982 .

(2) Where, in relation to an instrument, it is shown to the satisfaction of the Revenue Commissioners that the instrument gives effect, on or after the release date, to the transfer of shares by, or on behalf of, a person who is, or had become, entitled to those shares as a participant in an approved scheme, the Revenue Commissioners shall repay such an amount of the stamp duty as was paid, by reference to the heading “CONVEYANCE OR TRANSFER on sale of any stocks or marketable securities” in the First Schedule, on the instrument in respect of those shares.

Amendment of First Schedule to Stamp Act, 1891.

99. —(1) The First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, is hereby amended by the substitution for the heading

“SURRENDER, not being an instrument chargeable with duty as a conveyance on sale or a mortgage................... £5”

of the heading

“SURRENDER of any property, or of any right or interest in any property—

Upon a sale. See CONVEYANCE ON SALE.

By way of security. See MORTGAGE, etc.

In any other case....................................... £5”.

(2) An instrument bearing witness to, or acknowledging—

(a) the surrender, by parol or otherwise, of a leasehold interest in immovable property, or

(b) the merger of such an interest in a superior interest,

shall be charged to the same stamp duty as if it were a surrender of that leasehold interest.

(3) The Imposition of Duties (No. 277) (Stamp Duty on Certain Instruments) Order, 1985 (S.I. No. 151 of 1985), is hereby revoked.

(4) This section shall have effect with respect to any instrument executed on or after the date of the passing of this Act.

Amendment of section 1 of Provisional Collection of Taxes Act, 1927.

100. Section 1 of the Provisional Collection of Taxes Act, 1927 , is hereby amended by the insertion of “and stamp duties” before “but no other tax or duty”.

Amendment of section 93 (exemption of certain instruments from stamp duty) of Finance Act, 1982.

101. —(1) Section 93 of the Finance Act, 1982 , is hereby amended by the substitution of the following subsection for subsection (5):

“(5) This section shall have effect with respect to any instrument executed after the date of the passing of this Act and before the 30th day of September, 1986.”.

(2) The said section 93 is hereby further amended—

(a) in subsection (4) (a), by the substitution of “30 years” for “35 years”, and

(b) in subsection (4) (b) (i) (I), by the substitution of “150 hours” for “100 hours”, and

the said section 93, as amended by paragraphs (a) and (b), shall have effect with respect to any instrument executed after the 1st day of October, 1986, and before the expiration of one year from that date.