Finance Act, 1952

Conveyance or transfer on sale—limit on stamp duty in the case of certain transactions between bodies corporate.

19.—(1) (a) Subject to paragraph (b) of this subsection, this section applies to every instrument which is chargeable with stamp duty under or by reference to the heading “Conveyance or transfer on sale” in the First Schedule to the Stamp Act, 1891, and which is made for the purposes of or in connection with the conveyance or transfer of property from one body corporate (in this subsection referred to as the transferor) to another body corporate (in this subsection referred to as the transferee).

(b) This section shall not apply to an instrument such as aforesaid unless it is shown to the satisfaction of the Revenue Commissioners that—

(i) the transferor and the transferee are each within one of paragraphs (c), (d), (e), (f) and (h) of subsection (4) of section 13 of the Finance (No. 2) Act, 1947 (No. 33 of 1947), as amended by section 18 of this Act,

(ii) immediately before the execution of the instrument, the transferor was entitled to the entire beneficial interest in the relevant property,

(iii) the entire beneficial interest in the relevant property becomes vested in the transferee,

(iv) the transferor is the beneficial owner of not less than ninety per cent. of the issued share capital of the transferee, and

(v) the conveyance or transfer is not made in pursuance of an arrangement whereunder, whether directly or indirectly, the transferor will no longer be the beneficial owner of not less than ninety per cent, of the issued share capital of the transferee.

(2) On any instrument to which this section applies the duty chargeable under or by reference to the heading “Conveyance or transfer on sale” in the First Schedule to the Stamp Act, 1891, shall not exceed ten shillings.

(3) An instrument to which this section applies and which is stamped with an amount of duty less than the amount which, but for the provisions of this section, would be chargeable thereon shall be deemed not to be duly stamped unless the Revenue Commissioners have expressed their opinion thereon in accordance with section 12 of the Stamp Act, 1891.

(4) (a) For the purposes of paragraph (b) of subsection (1) of this section, the Revenue Commissioners may require the delivery to them of a statutory declaration in such form as they may direct, made by a solicitor of the Courts of Justice, and of such further evidence, if any, as they may require.

(b) The powers conferred on the Revenue Commissioners by paragraph (a) of this subsection shall be in addition to and not in substitution for the powers conferred on them by section 12 of the Stamp Act, 1891.