Finance Act, 1989

Relief from transfer stamp duty in the case of reconstructions or amalgamations of certain companies.

70.—(1) (a) Where in the course of a bona fide reconstruction or amalgamation of companies which, except for the fact that the transferee company is not registered in the State but is duly registered in another Member State of the European Economic Community, is in accordance with the provisions of section 31 of the Finance Act, 1965

(i) the transferee company acquires all of the issued share capital of a particular existing company and the consideration for the acquisition consists wholly of the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company, and

(ii) the particular existing company and the transferee company are shown to the satisfaction of the Revenue Commissioners to be wholly owned subsidiaries of the same holding company, then stamp duty under the heading “CONVEYANCE or TRANSFER on sale” in the First Schedule (as amended by the Finance Act, 1970 , and subsequent enactments) to the Stamp Act, 1891, shall not be chargeable on any instrument made for the purposes of or in connection with the transfer of the shares.

(b) In this section “holding company” and “subsidiaries” have the same meanings as they have in the Companies Act, 1963 .

(2) This section shall have effect with respect to instruments executed on or after the 20th day of December, 1988.