PART 1 INTERPRETATION

Overview

This Part defines certain terms, and sets out rules for the construction of certain references, used in the Stamp Duties Consolidation Act, 1999.

Section 1 Interpretation

(1) – (4) This section provides for the interpretation of terms and expressions used in the Stamp Duties Consolidation Act, 1999. It also sets out rules for the construction of certain references used in that Act. The various definitions and rules apply unless the context requires otherwise. Readers should also be aware that section 18 of the Interpretation Act, 2005, contains general rules for the construction of statutes which apply unless the contrary intention appears.

(1) The definitions of “accountable person”, “approved person”, “authorised person”, “civil partner”, “civil partnership”, “Commissioners”, “conveyance on sale”¹, “die”, “electronic return”, “executed”, “execution”, “e-stamping system”, “filer”, “forge”, “forged”, “impressed”, “instrument”², “material”, “Minister”, “money”, “paper return”, “policy of insurance”, “policy of life insurance”, “stamp”, “stamp certificate”, “stamped”, “stock”, “stock certificate to bearer” and “Teagasc” are self-explanatory.

The definition of “bill of exchange” means a draft, an order or a cheque (drawn on an account in the State). A “bill of exchange” as defined by the 1882 Act is “an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer”. “Cheque” is also defined in the Bills of Exchange Act, 1882 as a “bill of exchange (within the meaning of the 1882 Act) drawn on a banker payable on demand”.

Subsection (1A) (inserted by Section 72 of Finance Act 2014) provides that the following persons will not be accountable persons for the purposes of this Act.

1. the National Treasury Management Agency;
2. the Minister in relation to a function exercised by the Minister which is capable of being delegated to the National Treasury Management Agency under section 5 of the National Treasury Management Agency Act.

A “child” includes a person, being a transferee or lessee, who, prior to the date of execution of the instrument in respect of which relief from duty is claimed, has resided with, was under the care of and was maintained at the expense of the transferor or lessor throughout—

• a period of 5 years, or
• periods which together comprised of at least 5 years,

prior to such person reaching 18 years of age but only if the claim for relief is not based on the uncorroborated testimony of one witness.

A “lineal descendent” includes a person who, as transferee, is a child within the meaning of the definition of “child” as outlined in the previous paragraph.

A “marketable security” is defined as—

• a security (e.g. written evidence of a debt),
• which is capable of being dealt in (i.e. bought and sold) on the Irish Stock Exchange (i.e. on the Official List, the Development Companies Market, the Exploration Securities Market or the ITEQ Market).

This definition, therefore, encompasses both securities which are in fact dealt in, and securities which could be dealt in, on the exchange. The securities of private companies, because they may not be dealt in on the exchange, do not fall within this definition (but see definition of “stock”).

Where a claim is made that a security which has not been listed, quoted or dealt in on the Irish Stock Exchange is a marketable security the claimant should furnish sufficient proof to satisfy the Revenue Commissioners that the security is one which according to the use and practice of the exchange is capable of being dealt in on the exchange without any amendments being made to the security or the body issuing the security in order to render the security capable of being dealt in on the exchange.

The inter-action of the definitions of “marketable security” and “stock” should be noted. The definition of “stock” includes share capital, capital stock and funded debt, as well as an option over such stock. The definition of “marketable security” could also include share capital, capital stock and funded debt. However, it is more likely that for the purposes of stamp duty the definition of “marketable security” was intended to cover securities not already covered by the definition of “stock” (e.g. loan capital which is not capital stock or funded debt).

The definition of “residential property” relies on Schedule 3 and 4 to the Valuation Act 2001 and is linked to the operation of the rating system.

The definition of “residential property” does not include contents but it does include the curtilage (i.e. the normal domestic out-houses, yard, garden, etc.) up to an area of one acre (exclusive of the site of the residential property).

Readers should also be aware that the Interpretation Act, 2005, contains definitions which apply unless the context otherwise requires. The definitions contained in that Act and the sections, etc., in which they are to be found in this Act are set out in Appendix 1.

(2) – (4) This section also sets out how references in the Act to enactments, Parts, Chapters, sections, Schedules, subsections, paragraphs, subparagraphs, clauses or subclauses are to be construed.

Relevant Date: Finance Act 2014