Section 31B Licence agreements

Summary

This section provides that a charge to stamp duty will arise on certain licence agreements relating to land in the State under which the licensee is allowed to carry out development on that land and 25 per cent or more of the market value of the land is paid to the licensor, other than as consideration for the sale of all or part of the land.

The charge under section 31B applies to instruments executed on or after 13 February 2013. However, the charge will not apply where an instrument is executed solely in pursuance of a binding contract or agreement entered into before 13 February 2013.

Details

(1) The term “development” is defined in subsection (1).

(2) A contract or agreement relating to land in the State, under which a person is entitled to enter onto the land to carry out development on the land, is chargeable to stamp duty as if it were a conveyance or transfer of the estate or interest in the land where the holder of the estate or interest in the land receives a payment, other than as consideration for the sale of the estate or interest in the land, which amounts to, or payments which together amount to, 25 per cent or more of the market value of the land.

(3) The Revenue Commissioners will refund any duty paid on the contract if the contract is later rescinded or annulled. While this section does not specify a time limit for submitting claims for refund, a 4 year time limit is provided for by section 159A from the date the contract is stamped, in respect of a valid claim for refund. Interest may arise on the refund – see section 159B.

Relevant Date: Finance Act 2014