S.I. No. 151/1985 - Imposition of Duties (No. 277) (Stamp Duty on Certain Instruments) Order, 1985.

S.I. No. 151 of 1985.

IMPOSITION OF DUTIES (No. 277) (STAMP DUTY ON CERTAIN INSTRUMENTS) ORDER, 1985.

The Government, in exercise of the powers conferred on them by section 1 of the Imposition of Duties Act, 1957 (No. 7 of 1957), and section 22 of the Finance Act, 1962 (No. 15 of 1962), hereby order as follows:

1. This Order may be cited as the Imposition of Duties (No. 277) (Stamp Duty on Certain Instruments) Order, 1985.

2. This Order shall come into operation on the 11 day of June, 1985, and shall not have effect with respect to any instrument executed before that date.

3. Where, in connection with, or in comtemplation of, a sale of property, the vendor enters into—

( a ) an agreement for the grant of a lease of the property for a term exceeding 35 years, or

( b ) an agreement (other than a contract for the sale of the property) under which the vendor grants any other rights in relation to the property,

any conveyance or transfer, subject to the agreement, of the property by the vendor shall be charged to stamp duty as a conveyance or transfer on sale of the property for a consideration equal to the value of the property and the value shall be determined without regard to the agreement.

4. (1) The First Schedule to the Stamp Act, 1891, is hereby amended by the substitution for the heading

"SURRENDER, not being an instrument chargeable with duty as a conveyance on sale or a mortgage... ..	£5"
of the heading
"SURRENDER of any property, or of any right or interest in any property—
Upon a sale. See CONVEYANCE ON SALE:
By way of security. See MORTAGE, etc. In any other case ... ... ... ... ...	£5".

(2) An instrument bearing witness to, or acknowledging—

(a) the surrender, by parol or otherwise, of leasehold interest in immovable property, or

(b) the merger of such an interest in a superior interest,

shall be charged to the same stamp duty and if it were a surrender of that leasehold interest.

5. (1) A declaration by deed under section 65(2) of the Conveyancing and Law of Property Act, 1881, to the effect that, from and after the execution of the deed, a term subsisting in land shall be enlarged, shall, where the term was created by an instrument executed within 6 years of the date of the execution of the deed, be charged to stamp duty as a conveyance or transfer on sale of that land for a consideration equal to the value of the land and that value shall be determined without regard to the said term of any part thereof.

(2) The provisions of section 50 of the Finance Act, 1979 (No. 11 of 1979), shall not apply to a deed which is chargeable to stamp duty under paragraph (1) of this Article.

6. This Order shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

GIVEN under the Official Seal of the Government, this 28 day of May, 1985.

GARRET FITZGERALD,

Taoiseach.

EXPLANATORY NOTE.

This Order makes provisions in relation to the stamp duty chargeable on certain instruments. The Instruments affected are as follows:

(1) A conveyance or transfer on sale where the vendor of property enters into an agreement for a long lease or grants rights in relation to the property.

(2) An instrument which evidences the surrender of a leasehold interest or the merger of a leasehold interest in a superior interest.

(3) A declaration by deed to the effect that a term in land is enlarged in a case where the term was created by an instrument executed within 6 years of the date of the execution of the deed.

This Order comes into operation on 11 June 1985.