Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

Section 61 Location of insurance risk for stamp duty purposes

This section sets out how the location of an insurance risk is to be determined. The charge to stamp duty under the “POLICY OF INSURANCE other than Life Insurance, etc.” and “CONVEYANCE or TRANSFER on sale of a policy of insurance or a policy of life insurance, etc.” heads of charge in Schedule 1 and the charge to the life insurance levy (see section 124B) and non-life insurance levy (see section 125) depend on the location of the risk: to be liable the risk must be located in the State.

  • Where the insurance relates to —
    • (2)(a) buildings, or to buildings and their contents where the contents are covered by the same policy, the risk is located in the State if the property is in the State;
    • (2)(b) vehicles of any kind, the risk is located in the State if the vehicles are registered in the State; and
    • (2)(c) travel or holiday risks and the policy is of a duration of 4 months or less, the risk is located in the State if the policyholder took out the policy in the State.
  • In any other case the risk is located in the State—
    • (2)(d) where the policyholder is an individual and the policyholder has his or her habitual residence in the State.

Example

ABC Ltd sells extended warranty insurance. B, a retailer, acts as intermediary for ABC Ltd by selling the policies to individuals purchasing goods from him. If those individuals (i.e. the policyholders) have their habitual residence in the State then the risk is located in the State.

  • where the policyholder is a legal person other than an individual and the policyholder’s head office or branch to which the policy relates is situated in the State.

Example 1

DEF is a Dutch company the head office of which is located in Holland. DEF takes out a public liability policy with a UK insurer via an Irish insurance broker. The policy is in respect of possible liability should DEF’s customers be injured during a funfair which DEF is organising in Dublin. The risk is not located in the State - DEF, the policyholder, is a legal person the head office of which is outside the State.

Example 2

GHI is a German company with its head office in Berlin. It has a branch in Dublin. The Dublin branch takes out a public liability policy in respect of injury to any members of the public visiting its offices in Dublin. The risk is located in the State as the policyholder to which the policy relates is located in the State.

(1) Subsection (1) contains a definition of “branch” which is self-explanatory.

Relevant Date: Finance Act 2014