Stamp Duties Consolidation Act 1999 section 31C

Shares deriving value from immovable property situated in State

Section 31C provides that where shares, units or partnership interests derive the greater part of their value from non-residential property in the State, a transfer of those shares, units or interests is chargeable to stamp duty at the non-residential property rate of 7.5 per cent rather than the normal 1 per cent rate for share transfers.

• The section targets indirect disposals of non-residential property carried out by transferring shares in a company, units in an IREF or interests in a partnership that derive more than half their value from such property
• The 7.5 per cent rate applies where the transfer results in a change of control over the underlying property and the property was acquired or developed to realise a gain on disposal, or was held as trading stock
• Anti-avoidance rules treat staged or split transfers between connected persons or persons acting in concert as a single transfer, and artificial arrangements to reduce the proportion of value attributable to property are disregarded
• Where a transaction could be chargeable under both section 31C and section 31D, section 31C takes priority and the 7.5 per cent rate applies