Revenue Note for Guidance
It may happen that the amount on which stamp duty is chargeable is expressed in a foreign currency e.g. the consideration for a foreign property may be expressed in the currency of the country in which the property is located. This section sets out how that foreign currency amount is to converted into €’s. It provides that where the consideration is in a foreign currency the rate of exchange to be used to convert that currency into its € equivalent is the rate applicable at the date of execution of the instrument.
A buys shares in B Ltd for US$50,500. The transfer is executed on 28 January, 2004. A wants to pay his stamp duty liability in €’s. The duty is calculated as follows:
Euro/US exchange rate on 28/01/04 |
€1 = US$1.2550 |
Consideration in US$ |
US$50,500 |
Euro equivalent of US$ consideration |
€40,239.04 (50,500 ÷ 1.2550) |
Duty payable |
€402 (i.e. 1% rounded down to the |
nearest €). |
Relevant Date: Finance Act 2014