Revenue Note for Guidance

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Revenue Note for Guidance

Section 40 Calculation of ad valorem duty on stock and securities

Summary

This section sets out how stamp duty is to be calculated where the consideration for a conveyance on sale consists of stock or securities.

Details

(1) Where the consideration, or part of the consideration, for a conveyance on sale consists of stock or marketable securities, the conveyance is to be charged with duty in respect of the value of those stocks or securities on the date of execution of the conveyance. “Value” means market value and not nominal value.

Example

A sells 10 acres to B for €30,000 plus 10,000 shares in XYZ Ltd. The shares are valued at €50,000 on the date of the conveyance. The stampable consideration for the conveyance of the 10 acres is €80,000. As the property is non-residential the rate of duty is 2%.

(2) Where the consideration, or part of the consideration, for a conveyance on sale of any property consists of a security which is not a marketable security, the conveyance is to be charged with duty in respect of the value of the property conveyed on the date of execution of the conveyance.

Example

A sells land to B valued at €600,000. The consideration for the sale is a security which B holds which is not a marketable security. Stamp duty is chargeable on the value of the land on the date of execution of the conveyance i.e. €600,000.

Relevant Date: Finance Act 2014