Section 108A National Development Finance Agency, etc.
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Amendments
Section 108A inserted by Finance Act 2003 section 139 in relation to instruments executed on or after 1 January 2003.
(1) In this section-
"land" includes an interest in land;
"the Agency" means the National Development Finance Agency established by section 2 of the National Development Finance Agency Act 2002.
(2) Stamp duty shall not be chargeable on any instrument executed-
(a) by or on behalf of the Agency whereby property is acquired by the Agency, or
(b) by a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002 whereby land is acquired from the Agency, from a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002, or from a State authority within the meaning of section 1 of the National Development Finance Agency Act 2002.
(3) Subsection (2)(b) shall not apply to an instrument executed by a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002 unless-
(a) on the date the instrument is executed, the company is 100 per cent beneficially owned, either directly or indirectly by the State, and
(b) on or before that date, the Minister has received confirmation in writing from the Agency that such company will remain indefinitely so beneficially owned by the State.
(4) Where, in relation to an instrument which is exempt from stamp duty by virtue of subsection (2)(b)-
(a) the company disposes of the land or any part of the land the subject matter of such instrument, other than to a company formed by the Agency under section 5 of the National Development Finance Agency Act 2002, the company shall become liable to pay to the Commissioners [an amount (in ths section referred to as a "clawback")]1 equal to the amount of stamp duty which would have been charged on the instrument in the first instance if the land disposed of had been conveyed or transferred by an instrument to which subsection (2)(b) had not applied, or
(b) the company ceases, at any time, to be 100 per cent beneficially owned, either directly or indirectly by the State, the company shall become liable to pay to the Commissioners a penalty equal to the amount of stamp duty which would have been charged on the instrument in the first instance had subsection (2)(b) not applied,
together with [interest on [the clawback]1, calculated in accordance with section 159D]2, from the date of any such disposal or cessation to the date [the clawback]1 is remitted.
Amendments
1 Substituted by Finance (No. 2) Act 2008 section 98 and Schedule 5 Part 5 Chapter 2 para 7(p)(i) from 24 December 2008 and to the extent that Chapter 3A applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before 24 December 2008 which by 24 December 2008 have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the act.
2 Substituted by Finance Act 2005 section 145(7)(b) and Schedule 5 Part 2.
When is the relief subject to clawback and how is clawback calculated?
(4) Penalty stamp duty equivalent to the stamp duty that would have been chargeable if the original transfer had not been exempted by (2)(b), together with interest at 0.0219% for each day the penalty remains unpaid, applies if the transferee company...
(5) Notwithstanding paragraphs (a) and (b) of subsection (4), the maximum [clawback]1 payable on any instrument shall not exceed the amount of duty which would have been charged on the instrument in the first instance had subsection (2)(b) not applied.
Amendments
1 Substituted by Finance (No. 2) Act 2008 section 98 and Schedule 5 Part 5 Chapter 2 para 7(p)(ii) from 24 December 2008 and to the extent that Chapter 3A applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before 24 December 2008 which by 24 December 2008 have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the Act.
