Domestic Exemptions

Spouses and Co-habitants

Transfers between spouses are exempt from stamp duty, except for certain conveyances or transfers specified in other sections. This exemption does not apply if the property or beneficial interest is transferred to someone other than the spouse or civil partner.

Transfers upon  the dissolution of a marriage or civil partnership are also exempt from stamp duty, subject to certain conditions. This exemption applies to orders made following the dissolution of a marriage or civil partnership, including orders from courts in other territories recognized as valid in the State. However, this exemption does not apply if the property or beneficial interest is transferred to someone other than the former spouses or civil partners.

Transfers by cohabitants, executed on or after January 1, 2011, pursuant to an order under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, are exempt from stamp duty. This exemption does not apply if the property or beneficial interest is transferred to someone other than the cohabitants.

Wills

A will is exempt from stamp duty. Transfers of property pursuant to a will or intestacy are not subject to stamp duty.

In some cases, there is a statutory right to appropriate assets to apply them for the satisfaction of a share of the estate. Where the appropriation is in satisfaction of the rights under intestacy or the will, it is treated the same as a benefit under the will and thereby outside the scope of stamp duty.

Where the entitlement under a will is varied after death by agreement, there may be deemed to be a conveyance on sale to the extent that the disposition of the asset is not in accordance with the terms of the will. This would be so if it gives effect to a sale or a gift by the personal representatives or beneficiaries to another. Stamp duty would apply in relation to a renunciation, whether or not for consideration.

A disclaimer is a non-acceptance of the benefit under a will or intestacy. The person cannot direct the benefit in his favour; it passes in accordance with the terms of the will or by operation of law. Stamp duty is not applied. However, if the disclaimer purports to direct the property, it is potentially a conveyance on sale and subject to stamp duty accordingly.

Liquidation

The distribution of assets to shareholders by the company is potentially a conveyance on sale subject to stamp duty. The distribution of cash is not subject to stamp duty.

The distribution of assets in specie is potentially subject to stamp duty. It may be a distribution in satisfaction of a cash dividend and subject to stamp duty accordingly.

The distribution in the course of liquidation may be exempt from stamp duty. If it is in liquidation and at the commencement of liquidation, the owners of the company become beneficially entitled to the net assets of the company. In principle, if they are distributed in specie in accordance with the entitlements of the shareholder, they may not be subject to stamp duty, being a mere conveyance of a nominal interest.

The transfer of beneficial ownership effectively happens by operation of law in this case. However, if the assets are distributed subject to a mortgage or charge, or there is an assumption of debt or the company forgives debts, the instrument may be chargeable to stamp duty on the debt owed, mortgage assumed, or forgiven. A specific indemnity given by the transferee to the liquidator may trigger stamp duty under this heading.

Trusts

The transfer of assets to trustees is subject to stamp duty in accordance with general principles. Where it is undertaken by a written conveyance on sale, stamp duty will apply.

The settlor will generally be deemed a connected person or the transfer will not be for full value, in which event market value will apply. In the usual way, assets which may be transferred without a written document may avoid stamp duty on the basis there is no conveyance on sale.

Conveyance, transfer, lease, or disposition of land by the trustees is subject to stamp duty. There is an exemption for certain classes of charitable trustee.

An appointment by the trustees of trust property is exempted from stamp duty. If it is appointed subject to a mortgage or payment of the debt, stamp duty is charged on the debt.

In the same way as for estates, the rearrangement of interests in trusts may be subject to stamp duty.

Beneficiaries Interests

The beneficiary’s right under a trust is a separate interest and may be subject to stamp duty on conveyance/transfer. If a beneficiary exercises the power to change the trust and direct that the asset be held under a new trust, this is prospectively a stampable disposition. A release of the remainder interest increasing the interest for the benefit of the life tenant is treated in the same way.

If the parties or beneficiaries vary their interests in a way not provided for under the original trust, the benefits thereby transferred are subject to stamp duty to the extent there is a stampable document. A disclaimer of an interest which takes place by operation of law is not subject to stamp duty.

The deed of appointment of new trustees does not involve stamp duty. The assets are vested in them as their nominees.

Where assets are held under a bare trust, the vesting in the beneficial owner is not subject to stamp duty.

Young Trained Farmers

There is  relief from stamp duty in respect of transfers of agricultural land to young trained farmers.

Finance Act 2023 extends consanguinity relief (which applies to sales and transfers of farmland between certain blood relatives) to 31 December 2028. The rate of stamp duty where consanguinity relief applies is a fixed rate of 1 per cent of the consideration.

Finance Act 2023 amends the exemption from stamp duty on the sale, transfer or other disposition of payment entitlements within the meaning of Regulation (EU) No. 1307/2013. This Regulation forms part of the Common Agricultural Policy (CAP) Regulations and has been repealed and replaced by Regulation (EU) 2021/2115. This amendment updates the reference to the 2021 Regulation.

Finance Act 2023 updates farm consolidation relief for qualifying farmers. The amendment updates the wording in section 81C to take account of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 to refer to ‘civil partner’ in addition to ‘spouse’.