Section 101A Single farm payment entitlement

Summary

(1) “payment entitlement” has the same meaning as it has for the purposes of Council Regulation (EU) No. 1307/2013 of 17 December 2013¹

(2) Subject to subsection (3), stamp duty is not chargeable on an instrument for the sale, transfer or other disposition of a payment entitlement.

(3)(a),(b) Where an instrument consists of both a payment entitlement and other chargeable property, the consideration is to be apportioned on a just and reasonable basis as between the payment entitlement and the other property contained in the instrument, and in addition, only that part of the consideration which relates to property, which is not a payment entitlement, will be chargeable to stamp duty.

(5) Where property is conveyed in separate parts by different instruments, the apportionment of consideration under section 45(1), is to be on a justand reasonable basis where part of the property consists of a paymententitlement.

(6) Where a payment entitlement is included in property contracted to be purchased by two or more persons who are relevant persons connected with one another, 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 and as if the reference to the Capital Gains Tax Acts in the definition of “relative” in that section was replaced by a reference to the Stamp Duties Consolidation Act 1999.

(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