Section 50A Agreements for more than 35 years charged as leases

Summary

This section provides that an agreement for a lease for any term exceeding 35 years is to be treated as if it were an actual lease, where the lease is not stamped within 30 days of the date on which 25 per cent or more of the consideration mentioned in the agreement has been paid.

A lease made subsequently to, and in conformity with, an agreement for lease stamped under this section, is chargeable to a fixed duty of €12.50 under paragraph (4) of the heading “Lease” in Schedule 1.

The charge under section 50A 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) An agreement for lease of lands, tenements, or heritable subjects for any term exceeding 35 years, is chargeable with the same stamp duty as if it were an actual lease made for the term and consideration mentioned in the lease where 25 per cent or more of the consideration has been paid.

(2) The Revenue Commissioners will refund any duty paid on the agreement for lease if the agreement for lease is later rescinded or annulled.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 agreement for lease is stamped, in respect of a valid claim for refund. Interest may arise on the refund – see section 159B.

Relevant Date: Finance Act 2014