Section 90A Greenhouse gas emissions allowance

Summary

This section provides for an exemption from stamp duty on the sale, transfer or other disposition of a “greenhouse gas emissions allowance” as defined in the section. Any contract or agreement for the sale of a greenhouse gas emissions allowance is covered by the exemption. The section applies to instruments executed on or after 5 December 2007.

Details

(1) The definition of “greenhouse gas emissions allowance” is self-explanatory.

(2) Subject to subsection (2), stamp duty is not chargeable on an instrument for the sale, transfer or other disposition of a greenhouse gas emissions allowance.

(3) Where the property, the subject of the instrument, consists of both a greenhouse gas emissions allowance and other chargeable property, the consideration is to be apportioned on a just and reasonable basis as between the greenhouse gas emissions allowance and the other property contained in the instrument. In addition, only that part of the consideration which relates to property, which is not a greenhouse gas emissions allowance, will be chargeable to stamp duty.

(5) Where the property is contracted to be sold for one consideration and the property is conveyed to the purchaser in separate parts or parcels by different instruments, the apportionment of the consideration under section 45(1), is to be on a just and reasonable basis where part of the property consists of a greenhouse gas emissions allowance.

(6) Where a greenhouse gas emissions allowance is included in property contracted to be purchased jointly by two or more persons, who are relevant persons connected with one another, for one consideration but conveyed in parts or parcels by separate instruments, a similar apportionment under section 45(3), as that contained in subsection (5), is provided for.

(7) A “relevant person” for the purposes of subsection (6) is defined as a person by or for whom the property is contracted to be purchased and the question of whether persons are connected with one another is to be construed in accordance with section 10 of the Taxes Consolidation Act 1997.

(8) Where subsection (5) or subsection (6) applies and the consideration is apportioned other than in a just and reasonable manner, stamp duty is to apply as if the value of the property transferred was substituted for the consideration set out in the relevant instrument.

Relevant Date: Finance Act 2014