Revenue Note for Guidance

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Revenue Note for Guidance

Section 38 Partitions or divisions

A partition or division of property occurs where property which was owned jointly is conveyed by the joint owners in separate parcels into their separate names.

(1) This section provides that where equality money exceeding €130 is paid or given, or is agreed to be paid or given, the principal (see section 47) or only instrument effecting the partition or division is to be charged as a conveyance on sale: the amount of the consideration being the amount of the equality money.

Example

A and B are co-owners of agricultural land held in fee simple. The value of the lands is €180,000. They wish to partition the lands - A taking a part worth €110,000 and B taking the remaining part worth €70,000. A agrees to pay €20,000 equality money to B. The stampable consideration is €20,000 and as the property is non-residential the rate of duty is 2%.

(2) In a case where there is more than one instrument for completing the title of either party the principal instrument is to be ascertained and the other instruments are not chargeable to duty as they are not regarded as conveyances or transfers on sale where the ad valorem duty has been paid on the principal instrument.

Relevant Date: Finance Act 2014