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10 1990

FINANCE ACT, 1990

PART IV

Stamp Duties

Levy on banks.

108. —(1) In this section—

assessable amount” means the amount arrived at by dividing the specified amount by twelve and deducting £15,000,000 from the quotient;

bank” means a person who, on the 1st day of September, 1989, 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 (being returns relating to 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 18th day of January, 1989, the 15th day of February, 1989, the 31st day of March, 1989, the 28th day of April, 1989, the 31st day of May, 1989, the 30th day of June, 1989, the 31st day of July, 1989, the 31st day of August, 1989, the 29th day of September, 1989, the 31st day of October, 1989, the 30th day of November, 1989, and the 29th day of December, 1989;

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 13th day of September, 1990, 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) 0.3 per cent. of that part of the assessable amount shown therein that does not exceed £130,000,000 and

(b) 0.4055 per cent. of that part of the assessable amount shown therein that exceeds £130,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £130,000,000 stamp duty of an amount equal to 0.3 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 13th day of September, 1990, 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 investments in collective investment undertakings.

109. —(1) In this section—

accountable person”, in relation to an undertaking, means a person in whom is vested the legal ownership of the assets of the undertaking and also includes any unit holder and any management company, agent, intermediary, broker, or any other person who is engaged in the marketing of units to residents in the State or who is a party to a transaction involving the purchase of units in an undertaking by a unit holder;

“the airport” has the same meaning as it has in the Customs-free Airport Act, 1947 ;

“the Area” has the same meaning as it has for the purposes of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 ;

assessable amount”, in relation to an undertaking and in relation to the period from the 1st day of February, 1990, to the 30th day of June, 1990, and thereafter each quarter, means the amount or value of capital invested by or on behalf of unit holders in an undertaking in that period or quarter, without deduction for any commissions paid or other expenses incurred in relation to that investment, in consideration of the purchase by or on behalf of such unit holders of units in that undertaking but without regard to capital invested in consideration of the purchase by or on behalf of unit holders of excluded units;

Commissioners” means the Revenue Commissioners;

company” means any body incorporated in the State with limited liability or, if incorporated or otherwise formed under the law of any other jurisdiction, which corresponds under that law to a body so incorporated in the State;

declaration”, in relation to the purchase of units by persons who are not resident in the State, means a written declaration which—

(a) is made in such form as may be prescribed or authorised by the Commissioners,

(b) declares that at the time when the declaration is made the person who is beneficially entitled to the interest in relation to such units is not, or, as the case may be, all of the persons who are so entitled are not, resident in the State,

(c) contains as respects the person, or, as the case may be, each of the persons, mentioned in paragraph (b)

(i) the name of the person,

(ii) the address of his principal place of residence, and

(iii) the name of the country in which he is resident at the time the declaration is made,

and

(d) contains such other information as the Commissioners may reasonably require for the purposes of this section;

distribution” has the same meaning as it has for the purposes of the Corporation Tax Acts;

excluded units” means—

(a) units in which the persons who hold the beneficial interest are not resident, as provided for in the Income Tax Acts, in the State and in respect of which a declaration was made, at the time of purchase by those persons, to the person from whom such units were purchased;

(b) units of an undertaking repurchased or redeemed from a unit holder by a management company at the request of that unit holder;

(c) units in an undertaking purchased by or on behalf of a unit holder from undistributed profits or income arising from units already held by that unit holder in that undertaking;

(d) units purchased by or on behalf of a body of persons established for charitable purposes only or by the trustees of a trust so established acting on behalf of that trust and where that body or that trust is a charity for the purposes of the Income Tax Acts;

(e) units purchased by or on behalf of an insurer acting in the course of his business as an insurer;

(f) units in an undertaking purchased by or on behalf of a unit holder in exchange for units held by him in another undertaking provided that both such undertakings are sub-funds in an umbrella fund;

(g) units purchased by or on behalf of an occupational pension scheme;

(h) units purchased by or on behalf of a person acting in the course of his business in the airport or in the Area;

(i) units purchased by or on behalf of an undertaking, being an undertaking to which this section applies;

insurer” means the holder of an authorisation under the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. No. 115 of 1976), or the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984);

intermediary” means any person who provides relevant facilities in relation to an undertaking;

management company”, in relation to an undertaking, means a company which, in the course of trading operations carried on by the company, manages the whole or any part of the investments and other activities of the business of the undertaking;

occupational pension scheme” means any scheme or arrangement—

(a) which is comprised in one or more instruments or agreements, and

(b) which provides or is capable of providing benefits in relation to employees in any description of employment who reside within the State, and

(c) (i) which has been approved of by the Revenue Commissioners for the purpose of Chapter II of the Finance Act, 1972 , or

(ii) the application for approval of which under Chapter II of the Finance Act, 1972 , is being considered, or

(iii) being a statutory scheme to which section 17 of the Finance Act, 1972 , applies;

quarter” means a period of three months after the passing of this Act ending on the 31st day of March, the 30th day of June (other than the 30th day of June, 1990), the 30th day of September and the 31st day of December;

relevant facilities”, in relation to an undertaking, means—

(a) the marketing in the State of the units of the undertaking,

(b) the acting in the State as an intermediary in the purchase of the units of the undertaking by or on behalf of persons resident in the State or in the sale to such persons of such units, and

(c) the provision in the State on behalf of the undertaking of facilities for the making of payments to holders of its units, or the repurchase or redemption of its units;

relevant gains”, in relation to an undertaking, means gains accruing to the undertaking being gains which would constitute chargeable gains in the hands of a person resident in the State;

relevant income”, in relation to an undertaking, means any amounts of income, profits or gains which arise to or are receivable by the undertaking being amounts of income, profits or gains—

(a) which are or are to be paid to unit holders as relevant payments, or

(b) out of which relevant payments are, or are to be, made to unit holders, or

(c) which are or are to be accumulated for the benefit of, or invested in any property for the benefit of, unit holders,

and which if they arose to an individual resident in the State would, in the hands of the individual, constitute income for the purposes of income tax;

relevant payment” means, a payment made to a unit holder by an undertaking by reason of rights conferred on the unit holder as a result of holding a unit or units in the undertaking, other than a payment made in respect of the cancellation, redemption or repurchase of a unit;

relevant profits” means, in relation to an undertaking, the relevant income and relevant gains of the undertaking;

umbrella fund” means an undertaking which is divided into a number of sub-funds and in which unit holders are entitled to exchange rights in one sub-fund for rights in another sub-fund;

undertaking” means an undertaking the main objects of which include the collective investment, in any property, of capital raised from the public and the units of which may, at the request of the unit holders, be repurchased or redeemed, directly or indirectly out of the assets of the undertaking, and includes a unit trust, UCITS or other similar investment undertaking which, in the case of a similar investment undertaking is, in the opinion of the Commissioners, an undertaking to which this section applies notwithstanding that such undertaking is a company which issues shares to the public, whether or not those shares may be repurchased or redeemed directly or indirectly out of the assets of the undertaking;

units” includes shares and any other instruments granting an entitlement to share in the investments or income of, or receive a distribution from, an undertaking;

UCITS” has the meaning assigned to it by section 19 of the Finance Act, 1989 ;

unit holder”, in relation to an undertaking, means any person who by reason of the holding of a unit, or under the terms of a unit, in the undertaking is entitled to a share of any of the investments or relevant profits of, or to receive a distribution from, the undertaking;

unit trust” means a registered unit trust scheme within the meaning of the Unit Trusts Act, 1972 ;

(2) An accountable person shall deliver to the Commissioners a statement in writing showing the assessable amount for that accountable person—

(a) in respect of the period from the 1st day of February, 1990, to the 30th day of June, 1990, within 30 days from the 30th day of June, 1990, and

(b) in respect of each quarter, within 30 days from the end of each such quarter:

Provided that where it is expedient to do so and the Commissioners have agreed, a person, who is an accountable person in relation to an undertaking, may deliver a statement as required under the foregoing provisions of this subsection and make a payment as required under subsection (4) on behalf of one or more other persons, who are also accountable persons in respect of that undertaking, and any such delivery or payment on behalf of one or more accountable persons shall be deemed to be a delivery and a payment by each of them for the purposes of this section.

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

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

(5) In the case of failure by the accountable person to deliver any statement required by subsection (2) within the time specified in that subsection or of failure by the accountable person to pay any duty chargeable on any such statement on the delivery thereof that person shall be liable to pay, in addition to the duty, interest thereon at the rate of 1.25 per cent. for each month or part of a month from the expiration of the quarter to which the statement relates until the day on which the duty is paid and such interest shall be recoverable in the same manner as if it were part of the duty payable.

(6) There shall be furnished to the Commissioners, by an accountable person, such particulars as the Commissioners may deem necessary in relation to any statement required by this section to be delivered by the accountable person.

(7) Notwithstanding the provisions of subsection (6) an accountable person shall, if required to do so by notice from the Commissioners, prepare and deliver to the Commissioners within such time, being not less than 30 days, as shall be specified in the notice a return of—

(a) the names and addresses of all persons resident in the State in respect of whom the accountable person has, in the course of providing relevant facilities in relation to an undertaking during such periods as shall be specified in the notice—

(i) acted as an accountable person in the purchase by or on behalf of any of those persons of units in the undertaking or in the sale to such persons of such units,

(ii) provided facilities for the making of payments by the undertaking to any of those persons who hold units of the undertaking, and

(iii) provided facilities for the repurchase or redemption of units of the undertaking held by any of those persons,

and

(b) where appropriate, in respect of each such person—

(i) the name and address of each undertaking—

(I) the units of which have been so purchased by, or on behalf of, or sold to that person in that period,

(II) on whose behalf facilities have been provided for the making of payments by the undertaking to that person in that period, and

(III) on whose behalf facilities have been provided for the repurchase or redemption by the undertaking in the period of units in the undertaking held by that person,

and

(ii) (I) the value or total value of the units so purchased by, or on behalf of, or sold to that person,

(II) the amount of the payments so made by the undertaking to that person, and

(III) the value or total value of the units held by that person which were so repurchased or redeemed by the undertaking,

and in respect of such return, the Commissioners shall be entitled to require production of and inspect any books or records of the accountable person relating to such purchase of units or provision of facilities.

(8) A person shall, if he is required by notice in writing by the Commissioners to do so, deliver to the Commissioners, within such time, not being less than 30 days, as may be specified in the notice, particulars relating to the sale or purchase of units in an undertaking by that person and shall if so required by the Commissioners deliver to them a statement verifying such particulars, together with such evidence, statements and documents as the Commissioners may require in relation to such sale or purchase.

(9) In the case of default by an accountable person in delivering any statement required by subsection (2) or in paying any duty pursuant to subsection (4), where such default leads to either or both—

(a) an incomplete or inaccurate statement, and

(b) an inadequate payment of duty,

he shall be liable to a penalty of £2,000 or 25 per cent. of the total duty which, but for his default, would have been payable, whichever is the greater.

(10) The duty charged under subsection (3) and any interest charged under subsection (5) shall be recoverable from any one or more of—

(a) the accountable persons concerned,

(b) where any accountable person concerned is dead, his personal representatives, and

(c) any receiver, liquidator or administrator appointed to oversee the affairs of the accountable person concerned.

(11) An accountable person, on whom the Commissioners have served a notice in writing of the requirement to deliver a statement under subsection (2) or of the duty payable under subsection (3) together with any interest payable under subsection (5), shall, upon failure to deliver such statement or pay such duty if any and interest as is set forth in such notice within 30 days of the date of issue of such notice, be liable to the following penalties—

(a) where such notice has been served on an accountable person in respect of units held by him as a unit holder, £2,000 or 25 per cent. of the duty together with any interest payable, whichever is the greater, and £100 for each day on which the failure so continues,

(b) where such notice has been served on any other accountable person £20,000 or 25 per cent. of the duty together with any interest payable, whichever is the greater, and £500 for each day on which the failure so continues,

and for the purposes of this subsection the Commissioners may estimate the amount of duty payable from any information available to them.

(12) The Commissioners shall set up and maintain a register of persons other than unit holders who are, or who may become, accountable persons and shall provide facilities for the inspection of this register by the public at such times and on such conditions as appear reasonable to the Commissioners.

(13) Every person who on the date of the passing of this Act is an accountable person, other than a person who is an accountable person solely on the grounds that he is a unit holder, shall (for the purpose of registering as such), within the period of 60 days after the passing of this Act, furnish in writing to the Commissioners a statement setting out such particulars as the Commissioners may require in relation to the setting up and maintenance of the register provided for in subsection (12).

(14) Every person who after the date of the passing of this Act becomes an accountable person or intends to become an accountable person, other than a person who becomes or intends to become an accountable person solely on the grounds that he is or is to be a unit holder, shall (for the purpose of registering as such) furnish, not less than fourteen days prior to the participation of that accountable person in the provision of relevant facilities, the statement referred to in subsection (13) to the Commissioners.

(15) Any accountable person who fails to comply with the provisions of subsection (13) or subsection (14) shall be liable to a penalty of £20,000 and to a further penalty of £100 for each day on which the failure so continues.

(16) Any unit holder who purchases units in an undertaking, including units in the form of a stock certificate to bearer, from or through persons who are not registered under the provisions of subsection (12) shall be liable to a penalty of £2,000 or a sum equal to 25 per cent. of the capital invested by the unit holder in acquiring such units, whichever is the greater, and any such penalty shall be recoverable in the same manner as if it were part of the duty payable:

Provided that any unit holder to whom this subsection applies may, within 30 days of acquiring such units, deliver such statement as is referred to in subsection (2) and pay such duty as is referred to in subsection (3).

(17) (a) The Commissioners shall make such regulations as appear to them to be necessary for the purpose of giving effect to this section or of enabling them to discharge their functions thereunder.

(b) Every regulation made under this subsection shall be laid before Dáil Éireann as soon as may be possible after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Amendment of First Schedule to Stamp Act, 1891.

110. —(1) In this section “the First Schedule” means the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891.

(2) The Heading set out in Part I of the Ninth Schedule to this Act is hereby substituted for the Heading “BOND, COVENANT, or INSTRUMENT of any kind whatsoever” in the First Schedule.

(3) The Heading set out in Part II of the Ninth Schedule to this Act is hereby substituted for the Heading “CONVEYANCE or TRANSFER on sale of any stocks or marketable securities” in the First Schedule.

(4) The Heading set out in Part III of the Ninth Schedule to this Act is hereby substituted for the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” in the First Schedule.

(5) The Heading set out in Part IV of the Ninth Schedule to this Act is hereby substituted for the Heading “DUPLICATE or COUNTERPART of any instrument chargeable with any duty” in the First Schedule.

(6) The Heading set out in Part V of the Ninth Schedule to this Act is hereby substituted for the Heading “LEASE” in the First Schedule.

(7) The Heading set out in Part VI of the Ninth Schedule to this Act is hereby substituted for the Heading “MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security) and WARRANT OF ATTORNEY to confess and enter up judgment” in the First Schedule.

(8) The Heading set out in Part VII of the Ninth Schedule to this Act is hereby substituted for the Heading “RELEASE or RENUNCIATION of any property, or of any right or interest in any property” in the First Schedule.

(9) The Heading set out in Part VIII of the Ninth Schedule to this Act is hereby substituted for the Heading “SURRENDER of any property, or of any right or interest in any property” in the First Schedule.

(10) The Heading set out in Part IX of the Ninth Schedule to this Act is hereby substituted for the Heading “SHARE WARRANT issued under the provisions of the Companies Acts, and STOCK CERTIFICATE to bearer” in the First Schedule.

(11) The First Schedule is hereby amended by the deletion of the Headings “RECONVEYANCE, RELEASE or RENUNCIATION of any security” and “RENUNCIATION. See RECONVEYANCE and RELEASE”.

(12) Subsections (4) and (6) shall have effect with respect to instruments executed on or after the 1st day of September, 1990.

Amendment of section 58 (directions as to duty in certain cases) of Stamp Act, 1891.

111. —Section 58 (as amended by section 47 of the Finance Act, 1981 ) of the Stamp Act, 1891, is hereby amended by the substitution in subsection (8) of “paragraph 8” for “paragraph 4”.

Stamp duty on transfers of building land.

112. —(1) Notwithstanding the provisions of section 77 (2) of the Stamp Act, 1891, and of section 10 of the Finance Act, 1900, where, in connection with, or as part of any arrangement involving, a sale or a lease of any land, a dwellinghouse or apartment has been built, or is in the course of being built, or is to be built, on that land, any instrument whereby such sale or lease is effected shall be chargeable to stamp duty—

(a) in the case of such sale, under the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, on an amount equal to the aggregate of—

(i) any consideration paid in respect of the sale of that land, and

(ii) any consideration paid, or to be paid, in respect of the building of the dwellinghouse or apartment on that land;

(b) in the case of such lease, under the heading “LEASE” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, on an amount equal to the aggregate of—

(i) any consideration (other than rent) paid in respect of the lease of that land, and

(ii) any consideration paid, or to be paid, in respect of the building of the dwellinghouse or apartment on that land.

(2) Without prejudice to the generality of subsection (1) a dwellinghouse or apartment shall be regarded as having been built or being in the course of being built or to be built in connection with, or as part of any arrangement involving, a sale or a lease of any land where building has commenced prior to the execution of any instrument effecting the sale or lease.

(3) (a) Where in the case of any instrument of sale or lease to which this section applies, the aggregate consideration to which paragraph (a) or (b) of subsection (1) relates cannot, in the opinion of the Revenue Commissioners, be ascertained at the date on which the instrument is presented for stamping, then the instrument shall be chargeable to stamp duty as if the amount of the aggregate consideration which is chargeable under subsection (1) was equal to 10 times the unencumbered open market value of the land at the date of the instrument of sale or lease or to such lower multiple, not being less than 5, of the open market value of the land as the Revenue Commissioners consider appropriate having regard to the relevant information available to them.

(b) Where it is shown to the satisfaction of the Revenue Commissioners that the amount of the stamp duty paid under the provisions of this subsection exceeded the stamp duty with which the instrument would have been charged under paragraph (a) or (b) of subsection (1) had the aggregate consideration paid or to be paid in respect of the dwellinghouse or apartment been ascertainable at the date of stamping of the instrument, then the amount of such excess stamp duty shall, upon an application to the Revenue Commissioners within 3 years after the date of stamping of the instrument, be repaid to the person or persons by whom the stamp duty was paid and such repayment shall bear simple interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date of payment of the excess duty up until the date of such repayment and income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(4) For the purpose of determining whether this section shall apply to any instrument, the Revenue Commissioners may require the delivery to them, in such form as they may specify, of a statement or a statutory declaration by—

(a) any person directly or indirectly concerned with the sale or lease of the land or with the building of a dwellinghouse or apartment on the land, and

(b) any solicitor acting on behalf of any person to whom paragraph (a) relates,

of any facts which the Revenue Commissioners consider relevant in making any such determination.

(5) Any instrument to which the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities”, or the heading “LEASE” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, applies shall contain a statement, in such form as the Revenue Commissioners may specify, certifying whether or not the provisions of this section are applicable to such instrument, and the furnishing of an incorrect certificate shall be deemed to constitute the delivery of an incorrect statement for the purposes of section 94 of the Finance Act, 1983 .

(6) Where stamp duty has been charged on any instrument by reference to this section and, within two years after the date of stamping of the instrument, building has not commenced, then this section shall be deemed not to have applied to the instrument and, accordingly, the Revenue Commissioners shall, upon application to them within 3 years after the date of stamping of the instrument by the person or persons by whom the stamp duty was paid, repay to such person or persons the amount of the stamp duty paid by such person or persons which, but for the other provisions of this section, would not have been chargeable and such repayment shall bear simple interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date of payment of the excess duty up until the date of such repayment and income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(7) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(8) (a) In this section—

building” includes any improvement of any land, and

any alteration to the character of any land, preliminary to the erection thereon of a dwellinghouse or apartment;

land” includes any interest in any land but does not include the result of any act of building.

(b) For the purposes of this section, references to the repayment of stamp duty to a person who paid it include reference to any other person who satisfies the Revenue Commissioners that he is entitled to recover moneys owing to the person.

(9) This section shall have effect with respect to instruments executed on or after the 1st day of September, 1990.

Agreements as to payments of stamp duty on instruments.

113. —(1) Where in the opinion of the Revenue Commissioners it is inexpedient or impractical for any person carrying on a business and who—

(a) in the course of that business, is a party to instruments liable to stamp duty under the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, or

(b) acts as agent for any such party,

to pay stamp duty in respect of each such instrument, then the Revenue Commissioners may enter into an agreement with that person for the delivery to them of accounts for specified periods giving such particulars as may be required of such instruments.

(2) The agreement shall be in such form and shall contain such terms and conditions as the Revenue Commissioners consider proper.

(3) Where an agreement has been entered into under this section between the Revenue Commissioners and any person, and any instrument to which the agreement relates—

(a) is issued during the period the agreement is in force, and

(b) contains a statement that the appropriate stamp duty has been or will be paid to the Revenue Commissioners in accordance with the provisions of this section,

then that instrument shall not be chargeable with any stamp duty but in lieu thereof, and by way of composition, there shall be charged, in respect of the instruments to which the agreement relates which were issued during each period of account under that agreement a stamp duty of an amount equal to the aggregate of the amounts of stamp duty which, but for the provisions of this section, would have been chargeable upon each of the instruments concerned, and the stamp duty chargeable under this subsection (by way of such composition as aforesaid) shall be paid by the person to the Revenue Commissioners on the delivery of the account.

(4) Where a person makes default in delivering any account required by any agreement under this section or in paying the duty payable on the delivery of any such account, the person shall be liable to a penalty not exceeding £100 for every day during which the default continues and shall also be liable to pay, in addition to the duty, interest thereon (which shall be recoverable in the same manner as if it were part of the duty) at the rate of 1.25 per cent. for each month or part of a month from the date when the default begins.

(5) (a) The following provisions are hereby repealed, that is to say—

(i) section 19 of the Finance Act, 1950 ;

(ii) section 57 of the Finance Act, 1958 ;

(iii) section 24 of the Finance Act, 1964 ;

(iv) section 55 of the Finance Act, 1979 .

(b) Paragraph (a) shall come into operation 12 months after the passing of this Act.

Exemption from stamp duty of transfers by spouses.

114. —In addition to the provisions of section 14 of the Family Home Protection Act, 1976 (which relates to exemption from stamp duty and certain fees on creation of a joint tenancy in a family home) no stamp duty shall be payable on any instrument whereby any property is transferred by a spouse or spouses of a marriage to either spouse or to both spouses of the said marriage.

Exemption from stamp duty on capital companies for UCITS.

115. —Chapter II of Part IV of the Finance Act, 1973 , is hereby amended by the insertion of the following section after section 67:

“Restriction of application (Chapter II).

67A.—This Chapter shall not apply to any undertaking for collective investment in transferable securities (UCITS) to which Council Directive 85/611/EEC* of 20 December 1985, and any Directive amending that Council Directive, relates.”.

Amendment of section 19 (conveyance or transfer on sale — limit on stamp duty in respect of certain transactions between bodies corporate) of Finance Act, 1952 .

116. Section 19 (inserted by the Finance Act, 1980 ) of the Finance Act, 1952 , is hereby amended—

(a) by the insertion of the following subsection after subsection (2):

“(2A) Notwithstanding that at the time of execution of any instrument the bodies corporate between which the beneficial interest in the property was conveyed or transferred were associated within the meaning of subsection (2) of this section, they shall not be treated as having been so associated unless, additionally, at that time—

(a) one such body was beneficially entitled to not less than 90 per cent. of any profits available for distribution to the shareholders of the other such body or a third such body was beneficially entitled to not less than 90 per cent. of any profits available for distribution to the shareholders of each, and

(b) one such body would be beneficially entitled to not less than 90 per cent. of any assets of the other such body available for distribution to its shareholders on a winding up or a third such body would bebeneficially entitled to not less than 90 per cent. of any assets available for distribution to the shareholders of each on a winding up,

and, for the purposes of this section—

(i) the percentage to which one body corporate is beneficially entitled of any profits available for distribution to the shareholders of another body corporate, and

(ii) the percentage to which one body corporate would be beneficially entitled of any assets of another body corporate on a winding up,

means the percentage to which the first body corporate is, or would be, so entitled either directly or through another body corporate or other bodies corporate or partly directly and partly through another body corporate or other bodies corporate.”,

and

(b) by the substitution of the following paragraph for paragraph (c) of subsection (3):

“(c) the transferor and the transferee were to cease to be associated within the meaning of subsections (2) and (2A) of this section,”.

Relief from transfer stamp duty in the case of reconstructions or amalgamations of certain companies.

117. —(1) Where in the course of a bona fide reconstruction or amalgamation of companies which, except for the fact that the particular existing company is not registered in the State but is duly registered in another Member State of the European Economic Community, is in accordance with the provisions of section 31 of the Finance Act, 1965 (as amended by the Finance Act, 1989 ), a transferee company acquires the undertaking, or part of the undertaking, situate in the State of the particular existing company, then stamp duty under the heading “CONVEYANCE or TRANSFER on sale of any stocks or marketable securities” or the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, shall not be chargeable on any instrument made for the purposes of or in connection with the transfer of such undertaking or part of undertaking.

(2) This section shall be deemed to have effect with respect to instruments executed on or after the 20th day of April, 1990.

Removal of exemption from stamp duty.

118. Section 5 (which relates to exemption of the Agricultural Credit Corporation p.l.c. from certain stamp duties) of the Finance (Customs and Stamp Duties) Act, 1929 , and sections 12 (4) and 53 (1) of the Agricultural Credit Act, 1978 , shall, upon the passing of this Act, cease to have effect.

Amendment of section 64 of Companies Act, 1963 .

119. Section 64 of the Companies Act, 1963 is hereby amended in subsection (4) by the substitution, for all of the words from “, and accordingly” to the end of that subsection, of the following:

“and, accordingly, for the purposes of section 68 of the Finance Act, 1973, shares issued by a company in place of shares redeemed under this section shall constitute a chargeable transaction if, but only if, the actual value of the shares so issued exceeds the actual value of the preference shares redeemed at the date of their redemption and, where the issue of the shares does constitute a chargeable transaction for those purposes, the amount on which stamp duty on the relevant statement relating to that transaction is chargeable under section 69 of the Finance Act, 1973 , shall be the difference between—

(a) the amount on which the duty would be so chargeable if the shares had not been issued in place of shares redeemed under this section, and

(b) the value of the shares redeemed at the date of their redemption.”.

Exemption from stamp duty of certain instruments (commercial woodlands).

120. —(1) In this section “trees” means woodlands managed on a commercial basis and with a view to the realisation of profits.

(2) This section applies to an instrument, being a conveyance or transfer on sale of land, or a lease of land, where the instrument contains a certificate to the effect that trees (within the meaning of this section) are growing on a substantial part of such land.

(3) Stamp duty shall not be chargeable on any instrument to which this section applies, in respect of such part of the consideration for the sale or lease as represents the value of trees growing on the land.

*O.J. No. L 375 of 31.12.1985.