Section 33 Conveyance or transfer in contemplation of sale

Summary

This section charges transfers of property made in contemplation of a sale as if they were conveyances on sale.

Details

(1) Any instrument whereby property is conveyed or transferred “in contemplation of a sale of that property” is charged to duty as a conveyance or transfer on sale for a consideration equal to the value of that property.

(2) However, the section provides that the Revenue Commissioners will refund any excess duty paid if after the making or execution of the instrument, it is shown to their satisfaction either—

• that the sale has not taken place and the property has been reconveyed or retransferred, or
• the sale has been completed for a consideration lower than the value on which the duty had been paid in the first place.

The claim for a refund must be made not later than 4 years after the date the instrument was stamped. See also section 159A in relation to the time limits for claiming a repayment of stamp duty. Interest may arise on the refund – see section 159B.

(3) In a case where the sale was completed for a consideration lower than the value on which the duty had been paid in the first place the duty will not be repayable if the circumstances are such that duty would be payable on the transaction as a voluntary disposition inter vivos for inadequate consideration.

(5) The section is to apply whether or not the instrument conveys other property in addition to the property transferred in contemplation of the sale. The provisions of the section are not to affect the duty chargeable on the instrument in respect of that other property.

Relevant Date: Finance Act 2014