Stamp Duty – Legal Office Notice No. 4 of 2014
If Shared Ownership Leases/Affordable Housing cases, or other dispositions contemplated by either section 8 of the Housing (Miscellaneous) Provisions Act 1992 or section 106B of the Stamp Duties Consolidation Act 1999, contain a certificate confirming exemption from stamping, pursuant to section 8/1992 Act or section 106B/1999 Act, they are to be accepted without query provided such deeds are dated prior to 1st April 2011.
Section 64 of the Finance Act 2011, which inserts a new Section 106B into the Stamp Duties Consolidation Act 1999, provides that stamp duty on any instrument giving effect to the conveyance, transfer or lease of a house, building or land BY a Housing Authority, dated after 1st April 2011, shall not exceed €100. In effect, this means that dispositions by a Housing Authority, dated on or after 1st April 2011, are liable to stamp duty as conveyances/transfers on sale up to a maximum of €100. Such dispositions, dated prior to 1st April 2011, are exempt from duty.
In view of Section 107 and Schedule 3 of the Finance Act 2012, which commenced on 7th July 2012, it is no longer necessary for the certificate referring to section 8/1192 Act or section 106B of the 1999 Act to be included in the deed in order to claim any exemption.
Mortgages and Charges:
The Minister for Finance announced in his Budget Statement of 6th December 2006 that the Mortgage Head of Charge in Schedule 1 to the Stamp Duties Consolidation Act, 1999 was abolished for mortgage deeds executed on or after 7th December 2006. All mortgage deeds including primary, collateral, additional and equitable mortgages together with transfers of mortgages are now exempt from stamp duty. The term “mortgage”, as used in the Stamp Duty legislation, includes charges of registered lands securing the repayment of moneys advanced.
The Revenue Commissioners commenced the operation of an e-Stamping system on 30th December 2009 in accordance to S.I. No. 476 of 2009 – Stamp Duty (e-Stamping of Instruments) Regulations 2009.
Deeds (instruments) submitted for stamping on or after 30th December 2009 no longer bear a holographic stamp in relation to duty paid and Particulars Delivered.
Stamp Certificate Format
Each stamp certificate bears its own unique security number and other details that associate it solely and clearly with one particular deed. Where counterparts are being stamped, a separate stamp certificate, each with its own unique security number, will issue for each.
The stamp certificate contains the Revenue Logo and the following elements:
- Stamp Certificate Security Number (Stamp Certificate ID). The security number will be alpha numeric and will always have 20 digits and be in the following format.
- Document ID Number
- Date of Instrument
- Parties’ names
- Address and folio numbers (if registered) of the property.
- Chargeable Consideration
- Duty – (including for leases the rental element) and all penalty amounts whether mitigated in full or in part
- Reliefs applied
- Adjudication marker
- Date of issue of Stamp Certificate
ITRIS Data Entry
There are new fields in ITRIS, the electronic Form 17 (eForm 17), the paper Form 17 and relevant Registry of Deeds forms to record the stamp certificate security number. If the deed was liable for stamping on or after 30th December 2009, this security number must be entered into ITRIS at data entry stage, if it has not been entered by the lodging party using the eForm 17. The security number is entered and recorded in the Documents tab.
ITRIS and the eForm 17 will not allow the entry of a number in an incorrect format (i.e. a number that does not comply with the formula used by Revenue to generate the security number).
If the deed was presented for stamping prior to 30th December 2009, or did not require presentation to Revenue (e.g. transfer of family home into the joint names of spouses), ITRIS and the eForm 17 will provide an option to proceed without entering the security number.
Examination of Documents
All deeds that require delivery of particulars and/or payment of stamp duty must have a stamp certificate attached when lodged for registration.
When setting up the case, the officer should check the following in all cases
That the stamp certificate is attached to the relevant deed.
That the stamp certificate security number corresponds with the security number entered in ITRIS.
That the date of execution of the deed on the stamp certificate corresponds with the date on the relevant deed.
That the folio number, if any, quoted on the stamp certificate corresponds with the folio number in the relevant deed.
If any of the above is not fully complied with, then the application should be marked “Rejected” and documents returned to the lodging party.
Deeds that do not usually require stamping, such as a Deed of Grant, may occasionally contain a monetary consideration. In these cases, the stamp certificate must be attached to the deed.
Stamp Duty Changes in respect of Finance Act Certificates from 7 July 2012 – formerly Legal Office Notice 3 of 2012
Section 107 and Schedule 3 of the Finance Act 2012, which commenced on 7th July 2012, render stamp duty a fully self assessed tax. There were a number of key changes:
Deeds executed on or after 7th July 2012 will not be adjudicated and the Revenue system will not offer that option to persons filing stamp duty returns. However, practitioners will have the option of entering an “Expression of Doubt” when filing an online return. Selecting this option prevents the stamp certificate issuing until Revenue have decided on the point at issue.
Schedule 1 and Finance Act Certificates, which hitherto were required to validate reliefs and exemptions from stamp duty, are no longer required to be inserted in Deeds.
Where a Deed, that is dated on or after 7th July 2012, is accompanied by a stamp certificate, no query should be raised on the adequacy of stamp duty paid. Solicitors should not, under any circumstances, be asked to submit such a Deed for adjudication.
In the event that a Deed is lodged, without a stamp certificate issued by Revenue, and it is not a Deed creating a joint tenancy in a family home or otherwise obviously exempt from stamping, the following query should be raised:
“The Deed of Transfer was not accompanied by a stamp certificate issued by the Revenue Commissioners. See Section 104 of the Registration of Title Act 1964, as substituted by Section 64 of the Registration of Deeds and Title Act 2006. Please lodge the relevant stamp certificate or, if the Deed is exempt from stamping, state the grounds upon which such exemption is claimed”
A letter from the solicitors, referring to the statutory provisions or Revenue scheme relied upon, will satisfy this query. As stamp duty is a self assessed tax, solicitors should not be asked to submit Deeds to Revenue that are dated on or after 7th July 2012.
Settling officers must ensure that the relevant stamp certificate reference numbers are entered on ITRIS before completing any Dealings.
A PRA staff member will be nominated as Revenue Liaison Officer. All enquiries from Revenue in relation to either pending or completed cases should be referred to this person. Pending applications should be marked “For Further Attention” and passed to the Revenue Liaison Officer.
23 May 2014