tax briefing supplement 2011 - revenuethis content is more than 5 years old. where still relevant it...

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Tax Briefing Supplement September 2011

Contents

Tax Credits, Reliefs and Rates for the Tax Years 2010 and 2011 ......................................................................... 2 Stamp Duty ................................................................... 13 Residential Property Tax............................................... 32 VAT ............................................................................... 34 Capital Gains Tax ......................................................... 41 Corporation Tax ............................................................ 42 Capital Acquisitions Tax................................................ 43 Excise Duty Rates......................................................... 47 Vehicle Registration Tax ............................................... 51 Leaflets and Guides ...................................................... 65 Statements of Practice.................................................. 66 Double Taxation Treaties entered into by Ireland......... 67 Employee Expenses ..................................................... 73 Social Welfare Pensions and Allowances 2007-2011 .. 84 Average Market Mid-Closing Exchange Rates v Euro.. 87 Some Electronic Services Provided by Revenue ......... 88 Tax Briefing Index ......................................................... 89

TB Supplement September 2011 1

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Tax Credits, Reliefs and Rates for the Tax Years 2010 and 2011 Personal Tax Credits The following chart gives details of the main personal tax credits for the tax years 2010 and 2011 Note: Civil Partnership changes apply from 1 January 2011 only

Personal Circumstances Tax Year 2010 Tax Year 2011

Single Person €1,830 €1,650 Married Person or Civil Partner Tax Credit €3,660 €3,300 Widowed Person or surviving Civil Partner qualifying for One Parent Family Tax Credit €1,830 €1,650

Widowed Person or surviving Civil Partner without dependent children €2,430 €2,190

Widowed Person or surviving Civil Partner in year of bereavement €3,660 €3,300

One-Parent Family, Widowed or surviving Civil Partner, Deserted, Separated or Dissolved Civil Partnership, Divorced or Single (with qualifying dependent children, see note 1)

€1,830 €1,650

Widowed Person or Surviving Civil Partner with dependent child tax credit bereaved in 2010 --- €3,600

Bereaved in 2009 €4,000 €3,150 Bereaved in 2008 €3,500 €2,700 Bereaved in 2007 €3,000 €2,250 Bereaved in 2006 €2,500 €1,800 Bereaved in 2005 €2,000 --- Home Carer (max.) €900 €810 PAYE Tax Credit €1,830 €1,650 Age Tax Credit if Single or Widowed or surviving Civil Partner €325 €245

Age Tax Credit if Married or in a Civil Partnership €650 €490 Incapacitated Child (See note 1) €3,660 €3,300 Dependent Relative (See note 1) €80 €70 Blind Tax Credit - Single €1,830* €1,650* Blind Tax Credit - One Spouse or Civil Partner Blind €1,830* €1,650* Blind Tax Credit - Both Spouses or Civil Partners Blind €3,660* €3,300* Incapacitated Person - Allowance for Employing a Carer €50,000**max €50,000**max* Relief in respect of the cost of maintaining a guide dog (max €825) may be claimed under the heading of Health Expenses. ** Relief for Employing a Carer (2010 and 2011) is allowable at the individual's highest rate of tax, i.e. 20% or 41%.


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Note 1 Child or relatives income limits regarding tax credits The Child's/Relative's income limits Tax Year 2010 Tax Year 2011 One Parent Family Tax Credit 0 0 Incapacitated Child Tax Credit 0 0 Dependent Relative Tax Credit €13,837* €13,837 * In the case of Dependent Relative Tax Credit, if the relative's income exceeds the relevant limit no tax credit is due. Exemption Limits Exemption limits for single or widowed or Surviving Civil Partner, Couples in a marriage or Civil Partnership and additional amount(s) for qualifying children in 2010 and 2011. Note: Civil Partnership changes apply from 1 January 2011 only


Single or Widowed or surviving Civil Partner 65 years of age or over €20,000 €18,000

Married or in a Civil Partnership 65 years of age or over €40,000 €36,000 Single or Widowed or a surviving Civil Partner, Married or in a Civil Partnership 65 years of age or over Additional for 1st and 2nd dependent child

€575 €575

Single or Widowed or a surviving Civil Partner, Married or in a Civil Partnership 65 years of age or over Additional for each subsequent dependent child

€830 €830

Marginal Relief Tax Rate 40%* 40%* *The Marginal Relief Tax Rate only applies to persons 65 years of age or over. Tax Rates and Tax Bands Tax rates and bands applicable to your personal circumstance in tax year 2010 and tax year 2011. NB: Civil Partnership changes apply from 1 January 2011 only Personal Circumstances Tax Year 2010 Tax Year 2011 Single or Widowed or surviving Civil Partner without dependent children

€36,400 @ 20%, Balance @ 41%

€32,800 @ 20%, Balance @ 41%

Single or Widowed or surviving Civil Partner qualifying for One Parent Family Tax Credit

€40,400 @ 20%, Balance @ 41%

€36,800 @ 20%, Balance @ 41%

Married or in a Civil Partnership - one spouse or Civil Partner with income

€45,400 @ 20%, Balance @ 41%

€41,800 @ 20%, Balance @ 41%


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Personal Circumstances Tax Year 2010 Tax Year 2011 Married or in a Civil Partnership - both spouses or Civil Partners with income

€45,400 @ 20% (with an increase of €27,400 max), Balance @ 41%

€41,800 @ 20% (with an increase of €23,800 max), Balance @ 41%

Note: The increase in the standard rate tax band is restricted to the lower of €27,400 in 2010 and €23,800 in 2011 or the amount of the income of the spouse with the lower income. The increase is not transferable between spouses.

Income Levy - 2010 The Income Levy is payable on gross income from all sources before any tax reliefs, capital allowances, losses or pension contributions. The 2010 annual rates and thresholds of the Income Levy are as follows: Applicable to payments made in 2010 Income Levy Thresholds RateIncome up to €75,036 per annum 2% Income from between €75,037 to €174,980 per annum 4% Income above in excess of €174,980 per annum 6% The following are exempt from the Income Levy:

• Individuals who hold full medical cards (A 'GP only' medical card is not a 'full' medical card)

• Individuals whose annual income does not exceed €15,028 • Individuals aged 65 or over whose annual income does not exceed €20,000 • Married couples or Civil Partners, one or both of whom are aged 65 or over, whose

combined income for the year does not exceed €40,000 All Department of Social Protection payments are also exempt from the Income Levy. For the latest information on the Income Levy including Frequently Asked Questions and the Income Levy Certificate 2009 & 2010 Note: The Income Levy is abolished with with effect from 1 January 2011. Rent-a-Room Relief Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income, together with any sums received for the provision of meals or other services supplied in connection with the letting, may be exempt from income tax where the aggregate amount received in the year of assessment does not exceed the annual limit ( €10,000 for 2010 & 2011). Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected. For more information see Leaflet IT 70 - A Revenue Guide to Rental Income.


http://www.revenue.ie/en/tax/income-levy/index.htmlhttp://www.revenue.ie/en/tax/income-levy/index.htmlhttp://www.revenue.ie/en/tax/it/leaflets/it70.html

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Childcare Services Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000 in 2010 or 2011 the income is exempt from tax. The childcare service must be provided in the carer's home, not the children's home and no more than 3 children may be cared for at any time. Rent Relief for Private Rented Accommodation

Relief is due at the standard rate of tax (20%) in the tax years 2010 and 2011 subject to the following upper limits: NB: Civil Partnership changes apply from 1 January 2011 only


Single Under 55 max. €2,000 €1,600 Single Over 55 max. €4,000 €3,200 Widowed or a surviving Civil Partner/Married or in a Civil Partnership under 55 max. €4,000 €3,200

Widowed or a surviving Civil Partner/ Married or in a Civil Partnership over 55 max. €8,000 €6,400

Relief can be claimed by completing Form Rent 1 - Claim for Rent Relief on Private Rented Accommodation (PDF, 244KB)

Tax Relief for Loan Interest (Secured and Unsecured)

Tax Relief at Source (TRS) on Secured loans From 1 January 2002, tax relief for home mortgage interest is no longer given through the tax system but is instead granted at source. This means that your mortgage lender gives you the benefit of the tax relief elements on the mortgage interest on behalf of the Revenue Commissioners. Tax relief is granted on the amount of the interest paid, subject to the overall limits. For more information see leaflet: Mortgage Interest Relief (Tax Relief at Source). Your mortgage repayment is reduced by the amount of the tax relief. Your lender in turn claims this amount from Revenue. Any future adjustments in the tax relief (for example, arising from changes in interest rates) will be made automatically by the lender on behalf of Revenue. It is not necessary to claim mortgage interest relief in the annual tax return, and it no longer appears on your Tax Credit Certificate. Borrowers who are taking out new mortgages or who wish to claim for relief due to previous years must apply online at www.revenue.ie


http://www.revenue.ie/en/tax/it/forms/rent1.pdfhttp://www.revenue.ie/en/tax/it/forms/rent1.pdfhttp://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.htmlhttp://www.revenue.ie/

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Unsecured Home Loans Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed by review at the end of the tax year. If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan. Amount of Relief Available The rate of mortgage interest relief applicable to First-time buyers is 25% in years 1 and 2, 22.5% in years 3, 4 and 5 and 20% for years 6 and 7 of the mortgage on a maximum interest rate paid of €10,000 per annum. First-time buyers relief ends after year 7. Non first-time buyers receive relief at the rate of 15% on a maximum of €3,000 interest per annum. Mortgages taken out from 1 January 2004 to 31 December 2011, subject to qualifying loan criteria, are eligible for TRS Mortgage interest relief until 31 December 2017. Mortgages taken out from 1st January 2012 to 31st December 2012 will be entitled to mortgage interest relief at the reduced rates of 15% for first time buyers and 10% for non first time buyers, on the first €3,000 interest paid per individual. Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief. Mortgages taken out prior to 1st January 2004 are no longer eligible for mortgage interest relief. However, top up loans/equity release loans taken out since 1st January 2004 on these pre-2004 loans may be eligible for mortgage interest relief, provided they adhere to eligibility criteria as as listed above. Note: The relief will be abolished completely by the end of 2017. For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief. Relief available for loan interest on secured and unsecured loans for the tax years 2010 and 2011 NB: Civil Partnership changes apply from 1 January 2011 only

Personal Circumstances First Time Buyers All Others

Single €10,000 €3,000 Married or in a Civil Partnership/Widowed or a surviving Civil Partner €20,000 €6,000

Note: Amounts shown in the above table are the ceiling amounts for the years 2010 and 2011


http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html

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Medical Insurance Premiums Tax Relief at Source (TRS) Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS). Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%). Employees whose medical insurance premiums are paid on their behalf, by their employer, as a Benefit-in-Kind, will not have been allowed tax relief at source. To claim the relief due it will be necessary to notify your local Revenue Office by phone, email or in person with the relevant details or by completing your annual tax return. The Age-Related Tax Credit (ARTC) was introduced in 2009 and applies to medical 3insurance premiums paid to an authorised insurer. The amount of the credit depends on the age of the insured person on the date the contract was entered into or renewed. For more information see Leaflet: IT 5 - Medical Insurance Relief Revenue Job Assist Additional tax relief at the individual’s highest rate of tax, i.e. 20% or 41% in 2010 and 2011, is available for people who have been unemployed for one year or more and who take up a qualifying job. Relief in the first year of employment is €3,810 plus €1,270 for each child, reducing to two-thirds of that amount in Year 2 and one-third in Year 3. This relief is also available for persons who have been in receipt of either Disability Allowance, Blind Person’s Pension or Invalidity Pension for 12 months or more, Illness Benefit for 3 years or more or released after 12 months or more in prison. For more information see Leaflet IT 58 - Job Assist Information for Employees (PDF, 148KB). Revenue Approved Permanent Health Benefit Schemes Where an employer deducts the contributions from gross pay the tax relief is given at source. Therefore no further action is necessary to claim relief. Where an employer does not deduct the contributions from gross pay relief can be claimed, by notifying your local Revenue office of the relevant details by phone, email or in person ( See Further Information) or by completing your annual tax return. Tax Relief on Service Charges Income tax relief is available for individuals who pay local authority and other service charges. Relief is given for service charges paid in full and on time in the previous calendar year. A maximum of €400 tax relief is granted (at the 20% rate) in 2011 for service charges paid in the year 2010. For more information see Leaflet IT 27 - Tax Relief for Service Charges (PDF, 1.1MB). The relief is being abolished for tax year 2012 and subsequent years.


http://www.revenue.ie/en/tax/it/leaflets/it5.htmlhttp://www.revenue.ie/en/tax/it/leaflets/it58.pdfhttp://www.revenue.ie/en/tax/it/leaflets/#section20http://www.revenue.ie/en/tax/it/leaflets/it27.pdfhttp://www.revenue.ie/en/tax/it/leaflets/it27.pdf

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Relief for Service Charges paid in the years 2009-2011 Relief at 20% tax rate Allowed in the year For service charges paid in the year €400 2010 2009 €400 2011 2010 Nil 2012 2011 Home Carer’s Tax Credit A tax credit at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for Married Couples or Civil Partners where:

• One Spouse or Civil Partner (the 'home carer') works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to Social Welfare child benefit, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.

• The home carer’s income is not in excess of €5,080. A reduced tax credit applies

where the income is between €5,080 and €6,880 in 2010 or between €5,080 and €6,700 in 2011.

The tax credit is not available to Married Couples or Civil Partners that are taxed as single persons. Neither is the tax credit available to Married Couples or Civil Partners with combined incomes over €45,400 in the tax years 2010 or €41,800 in 2011 and who claim the increased standard rate tax band for dual income couples. For more information and also to claim the relief due complete the application form in Leaflet IT 66 - Home Carer's Tax Credit and send it to your local Revenue office. Alternatively, you can telephone your Regional LoCall number (see Further Information) with details of your claim. Trade Union Subscriptions An annual flat rate allowance of €350 at the standard rate of tax 20% (tax credit €70) is available for Trade Union subscriptions paid in 2010. The full allowance is available in 2010 regardless of the actual amount of the subscription paid. If you are/were a member of a Trade Union at any time during 2010 and you have not been granted relief for subscriptions made, you can phone your Regional LoCall number. Note: Tax relief for Trade Union subscriptions has been abolished with effect from 1 January 2011. Health/Medical Expenses Relief You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), from 1 January 2009 (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your


http://www.revenue.ie/en/tax/it/leaflets/it66.htmlhttp://www.revenue.ie/en/tax/it/leaflets/it66.htmlhttp://www.revenue.ie/en/tax/it/leaflets/#section20

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own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief. You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Hibernian Aviva Health, Quinn-healthcare, VHI, a Health Authority, or where a compensation payment is made or will be made. For more information see Leaflet IT 6 - Health / Medical Expenses Relief, Form MED 1 (PDF, 888KB) or phone your Regional LoCall number.

Tuition Fees Tax relief at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2010/2011 is €5,000 and 2011/2012 is €7,000. 2011/2012 only: the first €2,000 of each claim is disregarded for relief, where any one of the students in respect of whom the relief is claimed is a full-time student. In the case of a claim for relief where all the students concerned are studying part-time, the first €1,000 of the claim for relief is disregarded. For more information see Leaflet IT 31 - Tax Relief for Tuition Fees. Tax Relief Available to Systematic Short-time Workers The exemption from income tax for Jobseeker's Benefit paid to systematic short-time workers has been extended indefinitely.

PRSI - Employers/Employees Class A (Normal rate at which contributions are made) Tax Year 2010

Employee’s Income chargeable as below: Total Employer’s rate Earnings up to €75,036 to PRSI @ 4% plus a Health Contribution of 4% 8% 10.75%

Earnings over €75,036 (€1,443 per week, €2,886 per fortnight & €6,253 per month) to a Health Contribution of 5% 5% 10.75%

Tax Year 2011: Period 1/1/2011 – 1/7/2011 Employees Income chargable as below:

Employee rate Employer’s rate

Income up to and including €365 per week

4% 8.5%

Income greater than €365 per week 4% 10.75%


http://www.revenue.ie/en/tax/it/leaflets/it6.htmlhttp://www.revenue.ie/en/tax/it/forms/med1.pdfhttp://www.revenue.ie/en/tax/it/leaflets/it31.htmlhttp://www.revenue.ie/en/tax/it/leaflets/it31.html

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Tax Year 2011: Period 2/7/2011 – 31/12/2011 Employees Income chargable as below:

Employee rate Employer’s rate

Income up to and including €365 per week

4% 4.25%

Income greater than €365 per week 4% 10.75% Employees are exempt from PRSI on the first €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €352 or less per week in 2009 or 2010 are exempt from PRSI and Health Contribution. However, where earnings exceed €352 per week in 2009 or 2010, the employee’s PRSI Free Allowance remains at €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €500 or less per week in 2009 or 2010 are exempt from Health Contribution. Note: Recipients of a Department of Social Protection Widow’s, Widower’s or Surviving Civil Partner’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a 'Full' Medical Card and people aged 70 and over are also exempt from this contribution. 2011: The Employee PRSI ceiling has been abolished. The Health Contribution (and the Income Levy) has been abolished and has been replaced by the Universal Social Charge with effect from 1/1/2011 (see below). Any PRSI and Health Contribution queries should be directed to Department of Social Protection, Information Service at 1890 66 22 44 or at: www.welfare.ie PRSI - Self-Employed Class S (Self-Employed) Tax Year 2010 Self Employed Income chargeable as below: Total 3% PRSI and 4% Health Contribution on all income up to €75,036 7% 3% PRSI and 5% Health Contribution on all income over €75,036 8% Tax Year 2011 Self Employed Income chargeable as below: Total PRSI on all income 4% Self-employed persons are exempt from Health Contribution where the annual income is €26,000 or less in 2010. The minimum annual PRSI contribution is €253. Note: Recipients of a Department of Social Protection Widow’s, Widower’s or Surviving Civil Partner’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution in 2010. Holders of a 'Full' Medical Card and people aged 70 and over are also exempt from this contribution.


http://www.welfare.ie/

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2011: The Employee PRSI ceiling has been abolished. The Health Contribution (and the Income Levy) has been abolished and has been replaced by the Universal Social Charge with effect from 1/1/2011 (see below). Any PRSI and Health Contribution queries should be directed to Department of Social Protection, Information Service at 1890 66 22 44 or at www.welfare.ie

Universal Social Charge (USC) The Universal Social Charge is a tax payable on gross income from all sources, including notional pay, after any relief for certain capital allowances, but before pension contributions. The Universal Social Charge is effective with effect from the 1/1/2011 and it replaces the Income Levy and the Health Contribution. The rates of Universal Social Charge are:

• 2% on the first €10,036 • 4% on the next €5,980 • 7% on the balance.

However, these standard rates are modified in certain circumstances. In the case of individuals aged 70 or over, and individuals who hold full medical cards, the 45 rate applies to all income over €10,036. There is a surcharge of 3% on individuals who have income from self-employment that exceeds €100,000 in a year, regardless of age. Thus, where such individuals are under 70 years and do not hold a full medical card, a rate of 10% applies to such income and where such individuals are aged over 70 years or hold a full medical card, a rate of 7% applies. Exempt Categories:

• Where an individual’s total income for a year does not exceed €4,004

• All Dept of Social Protection payments

• Income already subject to DIRT

• Income from sources listed in Appendix B of Universal Social Charge FAQs (PDF, 330KB)

USC Certificate 2011 (PDF, 1.47MB)

Further Information If you are a PAYE customer your tax affairs are now dealt with in the region where you live. Check our contact details for more information. If you are calling from outside the Republic of Ireland phone +353-1-7023011. If you are taxed under the Self Assessment system you may contact the Revenue office shown on your notice of assessment.


http://www.welfare.ie/http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdfhttp://www.revenue.ie/en/tax/usc/forms/universal-social-charge-certificate-2011.pdfhttp://www.revenue.ie/en/contact/index.html

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Forms and Leaflets To request any Revenue Form or Leaflet LoCall 1890 306 706 (ROI only), +353 1 7023050 (from abroad), visit any Revenue Office or see: Leaflets and Forms. Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different service providers. Accessibility If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at: [email protected] PAYE Anytime The quickest and easiest way to keep your tax up to date is to use PAYE Anytime. PAYE Anytime is an internet system that lets you do business with Revenue electronically 365 days a year. You must register first. Registration is quick and easy. See PAYE Anytime for more information.


http://www.revenue.ie/en/tax/it/leaflets/index.htmlhttp://www.revenue.ie/en/tax/it/forms/index.htmlmailto:[email protected]://www.revenue.ie/en/online/paye-anytime.html

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Stamp Duty Stamp duties fall into two main categories:

1. Duties payable on a wide range of legal and commercial documents, including (but not limited to) conveyances of property, leases of property, share transfer forms and certain agreements. Depending on the nature of the document, the duty is either ad valorem or of fixed amount. Prior to 31 December 2009, the duties in this category were denoted by means of stamps affixed to or impressed on the document. Following the introduction of the eStamping system, all instruments must be stamped by means of attaching the stamp certificate, obtained under the eStamping system, to the instrument. Information, help text and guidelines on the eStamping System.

2. Duties and levies payable by reference to statements. These duties and levies

mainly effect banks and insurance companies and include a duty in respect of financial cards (e.g. Credit, ATM, Laser and Charge cards) and levies on certain insurance premiums and certain statements of interest. Information leaflet in relation to financial cards.

Tax & Duty Manuals - Section 16 FOI Act

Pension Levy - Information regarding filing and payment (PDF, 15.5KB) Property Residential Property The most common charge to stamp duty that affects individuals is the stamp duty on the purchase of houses and apartments. The amount of stamp duty payable depends on the price paid (or the market value where the price paid is less than market value) for the property. Example 1 House/apartment Consideration: €1,200,000 Stamp duty payable = €14,000 [(€1,000,000 @ 1%) + (€200,000 @ 2%)] Example 2 House/apartment Consideration: €125,000 Stamp duty payable = €1,250 [€125,000 @ 1%]


http://www.revenue.ie/en/tax/stamp-duty/e-stamping/index.htmlhttp://www.revenue.ie/en/tax/stamp-duty/e-stamping/index.htmlhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.htmlhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.htmlhttp://www.revenue.ie/en/about/foi/s16/templates/stamp-duty/http://www.revenue.ie/en/tax/stamp-duty/leaflets/info-pay-file.pdf

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Aggregation Aggregation applies in determining the stamp duty liability where a transaction forms part of a larger transaction or of a series of transactions involving residential property. The stamp duty liability is calculated on the basis of the aggregate consideration. The duty is then apportioned between the separate properties that are transferred by separate instruments and the apportionment is pro rata to the consideration for each property. Example 3 Two houses are purchased for a total of €1,200,000 (€800,000 for House A and €400,000 for House B). Stamp duty is calculated on the aggregate consideration of €1,200,000. Aggregate Consideration = €1,200,000 Stamp duty payable: €14,000 [Apportionment of duty between House A and House B is as follows: House A (€14,000 x €800,000) / €1,200,000 = €9,333 House B (€14,000 x €400,000) / €1,200,000 = €4,667] Finance Act 2011 Finance Act 2011 confirmed the changes to the stamp duty regime, which the Minister for Finance announced in his Budget speech on the 7 December 2010. These changes included a new rates schedule for stamp duty on residential property and the abolition of certain reliefs and exemptions on residential property. The following residential property reliefs were abolished with effect from 8 December 2010:

• Section 91A of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a new house/apartment not exceeding 125 square metres by an owner-occupier.

• Section 92 of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a new house/apartment where the floor area exceeds 125 square metres by an owner-occupier.

• Section 92B of the Stamp Duties Consolidation Act 1999 – Exemption for purchase of a house/apartment by a first-time buyer.

• Consanguinity relief on residential property. Transitional arrangements Transitional arrangements will apply where, as a result of the new rates or the termination of the reliefs or exemptions, a taxpayer is disadvantaged compared to the stamp duty treatment applicable prior to 8 December 2010. The transitional arrangements will apply where an instrument is executed on or after 8 December 2010 and before 1 July 2011 solely in pursuance of a binding contract that had been entered into prior to 8 December 2010. To avail of the benefit of the transitional arrangements, the instrument should contain the following certificate


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"It is hereby certified that this instrument was executed solely in pursuance of a binding contract entered into prior to 8 December 2010". Example 4 First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011. Stamp duty payable = Nil as first time buyer relief is available. Example 5 Owner-occupier, entered into a binding contract to purchase a newly built house for €500,000 before the 8 December 2010. The deed transferring the property is executed on the 30 June 2011. Stamp duty payable = Nil as owner occupier relief is available. Example 6 Owner-occupier, entered into a binding contract to purchase a newly built house for €500,000 before the 8 December 2010. The deed transferring the property is executed on the 30 July 2011. Stamp duty payable = €5,000 [€500,000 @ 1%] Note that clawback provisions will continue to apply to transfers where FTB or OO relief claimed. Clawback Where stamp duty relief is claimed, a clawback arises if rent is obtained from the letting of the house or apartment within a period of 2 years from the date of the conveyance or transfer, other than under rent a room arrangements. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property. A clawback will not arise where the property is sold to an unrelated third party during the 2-year period.

Form to notify Revenue of receipt of rent Example 7 First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011. Stamp duty payable = Nil as first time buyer relief is available. Property is rented out within two years of the date of the deed. Clawback payable: €5,000 [€500,000 @ 1%]


http://www.revenue.ie/en/tax/stamp-duty/forms/clawba1.pdf

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Example 8 First-time buyer, entered into a binding contract to purchase a property for €500,000 before the 8 December 2010. The deed transferring the property is executed before the 1 July 2011. Stamp duty payable = Nil as first time buyer relief is available. Property is rented out two years after the date of the deed. Clawback payable: €0 as after two year period. Non-residential property Non-residential property includes all types of property other than residential property, stocks or marketable securities and policies of insurance or life insurance. Rates of stamp duty on non-residential property. Example 9 Commercial unit Consideration: €90,000 Stamp duty payable: €5,400 [€90,000 @ 6%] Purchase of a site Where an individual purchases a site with no connected agreement to build a house or apartment, the transfer of the site is chargeable at the appropriate rate for non-residential property. Example 10 Site Consideration : €50,000 Stamp duty payable: €2,000 [€50,000 @ 4%] Where an individual purchases a site in connection with, or as part of, an arrangement to build a house or apartment on that site then stamp duty will be charged on the aggregate amount of the site cost and the building cost at the appropriate residential property rate. Example 11 Site with connected building agreement for a house or apartment Site cost €50,000 Building cost €165,000 Aggregate cost: €215,000 Stamp duty payable: €2150 [€215,000 @ 1%]


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Site to child relief Finance Act 2011 abolished section 83A of the Stamp Duties Consolidation Act 1999 which provided for a stamp duty relief on the transfer of a site from a parent to a child. Mixed property Where a transaction relates to a mixed property, the consideration must be apportioned between the residential and non-residential elements. The residential property is not aggregated with the non-residential portion for the purposes of determining the appropriate rate of stamp duty.

The Apportionment form (PDF, 89KB) is available on the Revenue website. Example 12 Shop with connected apartment Consideration: €1,200,000 Apportioned: Shop = €900,000 + Apartment = €300,000 Stamp duty payable: €57,000 [(€900,000 @ 6%) + (€300,000 @ 1%)] VAT and stamp duty Stamp duty is assessed on the VAT exclusive consideration, Sections 48 and 56 of the Stamp Duties Consolidation Act 1999 provide that the chargeable consideration for stamp duty purposes is to exclude any VAT chargeable under Section 2 of the VAT Act 1972 on the sale or lease. Where VAT is included in the consideration, it should be deducted before calculating the charge or rate of stamp duty. Gifts A transfer by way of gift is chargeable the same way as a transfer on sale, with the market value of the property being substituted for the consideration.


http://www.revenue.ie/en/tax/stamp-duty/certificates/apport1.pdf

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Leases A lease is chargeable to stamp duty on both the premium (or fine) and the rent payable under the lease. The duty chargeable on the premium is at the rate for residential or non-residential property as appropriate. Residential and Non-Residential Property Rate Lease for a term not exceeding 35 years or for any indefinite term

1% of the average annual rent

Lease for a term exceeding 35 years but not exceeding 100 years

6% of the average annual rent

Lease for a term exceeding 100 years 12% of the average annual rent A lease of a house or apartment for a term not exceeding 35 years or for any indefinite term and where the rent does not exceed €30,000 per annum is exempt from stamp duty. Certificates required in deeds For deeds executed before 8 December 2010, please see leaflet SD10A (PDF, 292KB). For deeds executed after 8 December 2010, please see leaflet SD10B (PDF, 130KB). There is also an easy-to-use electronic Guide to the certificates to be included in instruments for most residential and non-residential property transactions. The electronic guide is available on the Revenue website: Certificates required in deeds. Contact details For further information, please contact: The Stamping Office, New Stamping Building, Dublin Castle, Dublin 2 Lo-call: 1890 48 25 82 email: [email protected] Updated February 2011


http://www.revenue.ie/en/tax/stamp-duty/leaflets/sd10a.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd10b.pdfhttp://www.revenue.ie/en/tax/stamp-duty/certificates/index.htmlmailto:[email protected]

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Current Rates of Duty on Residential Property The rates of duty applicable for residential property (whether new or second-hand) are as follows: Rates of duty for deeds executed on or after 8 December 2010Aggregate Consideration Rate of Duty First €1,000,000 1% Excess over €1,000,000 2% Example 1: Consideration = €350,000 Rate Breakdown - €350,000 @ 1% Total Duty Payable = €3,500 Example 2: Consideration = €1,850,000 Rate Breakdown - €1,000,000 @ 1%, €850,000 @ 2% Total Duty Payable = €27,000 Current Rates of Duty on Non-Residential Property Non-Residential Property is any property other than residential property, stocks or marketable securities or policies of insurance. It includes (but is not limited to) sites, offices, factories, other business premises, shops, public houses, land and goodwill attaching to a business. For instruments executed after 15 October 2008 Aggregate Consideration Rate of Duty Up to €10,000 Exempt €10,001 to €20,000 1% €20,001 to €30,000 2% €30,001 to €40,000 3% €40,001 to €70,000 4% €70,001 to €80,000 5% Over €80,000 6% Aggregation continues to apply in determining the stamp duty liability where a transaction forms part of a larger transaction or of a series of transactions involving non-residential property. Accordingly, where the chargeable consideration is less than €80,000, the instrument should contain the normal certificate** reciting the appropriate threshold. However, where the top rate of 6% is payable there is no requirement to include a certificate in the instrument.


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** It is hereby certified that the consideration (other than rent) for the sale/lease is wholly attributable to property which is not residential property and that the transaction effected by this instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration (other than rent) which is attributable to property which is not residential property exceeds €10,000/€20,000/€30,000/€40,000/€70,000/€80,000. Former Rates of Stamp Duty Residential Property Instruments executed on or after 5 November 2007 and before 8 December 2010 Aggregate Consideration exceeds €127,000*

Rate for instruments executed on or after 5 November 2007

First €125,000 Nil Next €875,000 7% Excess over €1,000,000 9%

• Transactions, where the consideration (or the aggregate consideration) does not exceed €127,000, are exempt from stamp duty.

• First time buyers and owner occupiers can avail of stamp duty exemption/relief. Non-residential property For instruments executed before 15 October 2008Aggregate Consideration Rate of Duty Up to €10,000 Exempt €10,001 - €20,000 1% €20,001 - €30,000 2% €30,001 - €40,000 3% €40,001 - €70,000 4% €70,001 - €80,000 5% €80,001 - €100,000 6% €100,001 - €120,000 7% €120,001 - €150,000 8% Over € 150,000 9%


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Residential Property Instruments executed on or after 31 March 2007 and before 5 November 2007Aggregate Consideration Full Rate Up to €127,000 Exempt €127,000 - 190,500 3% €190,501 - 254,000 4% €254,001 - 317,500 5% €317,501 - 381,000 6% €381,001 - 635,000 7.5% Over €635,000 9%

• Full exemption from stamp duty for first time buyers for deeds executed on or after 31 March 2007.

Residential Property

For instruments executed on or after 2 December 2004 and before 31 March 2007Aggregate Consideration First Time Buyer Full Rate Up to €127,000 Exempt Exempt €127,000 - 190,500 Exempt 3% €190,501 - 254,000 Exempt 4% €254,001 - 317,500 Exempt 5% €317,501 - 381,000 3% 6% €381,001 - 635,000 6% 7.5% Over €635,000 9% 9% Changeover to € on 1 January 2002 - Residential Property Aggregate Consideration First Time Buyer Full RateUp to €127,000 Exempt Exempt €127,000 - 190,500 Exempt 3% €190,501 - 254,000 3% 4% €254,001 - 317,500 3.75% 5% €317,501 - 381,000 4.5% 6% €381,001 - 635,000 7.5% 7.5% Over €635,000 9% 9%


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Changeover to € on 1 January 2002 - Non- Residential Property Aggregate Consideration Rate of DutyUp to €6,350 Exempt €6,351 - 12,700 1% €12,701 - 19,050 2% €19,051 - 31,750 3% €31,751 - 63,500 4% €63,501 - 76,200 5% Over €76,200 6% 6 December 2001 - Residential Property Aggregate Consideration First Time Buyer Full RateUp to £100,000 Exempt Exempt £100,001 - 150,000 Exempt 3% £150,001 - 200,000 3% 4% £200,001 - 250,000 3.75% 5% £250,001 - 300,000 4.5% 6% £300,001 - 500,000 7.5% 7.5% Over £500,000 9% 9% 27 January 2001 - Residential Property Aggregate Consideration First Time Buyer Owner/Occupier Investor(New) Investor(2nd)Up to £100,000 Nil Nil 3% 9% £100,001-150,000 Nil 3% 3% 9% £150,001-200,000 3% 4% 4% 9% £200,001-250,000 3.75% 5% 5% 9% £250,001-300,000 4.5% 6% 6% 9% £300,001-500,000 7.5% 7.5% 7.5% 9% Over £500,000 9% 9% 9% 9%


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15 June 2000 - Residential Property Aggregate Consideration First Time Buyer Owner Occupier InvestorUp to £100,000 Nil Nil 9% £100,001-150,000 Nil 3% 9% £150,001-200,000 3% 4% 9% £200,001-250,000 3.75% 5% 9% £250,001-300,000 4.5% 6% 9% £300,001-500,000 7.5% 7.5% 9% Over £500,000 9% 9% 9% 23 April 1998 - Residential Property Aggregate Consideration Rate Up to £60,000 Nil £60,001 - 100,000 3% £100,001- 170,000 4% £170,001- 250,000 5% £250,001- 500,000 7% Over £500,000 9% 23 January 1997 Transition period: Contract dated prior to 23 January 1997 subsequent deed dated on or before 30 April 1997 Aggregate Consideration Rate Up to £5,000 Nil £5,001-10,000 £1.00 per £100 or part thereof£10,001- 15,000 £2.00 per £100 or part thereof£15,001- 25,000 £3.00 per £100 or part thereof£25,001- 50,000 £4.00 per £100 or part thereof£50,001- 60,000 £5.00 per £100 or part thereofOver £60,000 £6.00 per £100 or part thereof


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Residential Property Aggregate Consideration Rate £150,001 - 160,000 £7 per £100 or part thereof£160,001 - 170,000 £8 per £100 or part thereofOver £170,000 £9 per £100 or part thereof 1 September 1990 A separate head of charge covering conveyances or transfers on sale of certain policies of insurance and policies of life insurance was created in 1992 Aggregate Consideration Rate Up to £5,000 Nil £5,001- 10,000 £1.00 per £100 or part thereof£10,001- 15,000 £2.00 per £100 or part thereof£15,001- 25,000 £3.00 per £100 or part thereof£25,001- 50,000 £4.00 per £100 or part thereof£50,001- 60,000 £5.00 per £100 or part thereofOver £60,000 £6.00 per £100 or part thereof 28 January 1988 Aggregate Consideration Rate Up to £1,000 Nil £1,001 - 2,000 25p per £50 or part thereof £2,001 - 6,000 50p per £50 or part thereof £6,001 - 7,500 See list aside* £7,501- 10,000 £1.00 per £50 or part thereof£10,001- 20,000 £1.50 per £50 or part thereof£20,001- 50,000 £2.00 per £50 or part thereof£50,001-60,000 £2.50 per £50 or part thereofOver £60,000 £3.00 per £50 or part thereof


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14 May 1975 17 July 1982: ½ rate introduced for relatives where consideration exceeds £1,000. Aggregate Consideration Rate Up to £1,000 Nil £1,001 - 2,000 25p per £50 or part thereof £2,001 - 6,000 50p per £50 or part thereof £6,001 - 7,500 (see list aside) £7,501- 10,000 £1.00 per £50 or part thereof£10,001- 20,000 £1.50 per £50 or part thereof£20,001- 50,000 £2.00 per £50 or part thereofOver £50,000 £3.00 per £50 or part thereof 4 August 1973 1949 - 16 July 1982: 1% for relatives where consideration exceeds £6,000. Aggregate Consideration Rate

*List of scale rates 04.08.1973 - 01.08.1990

Up to £1,000 Nil

£1,001 - 2,000 25p per £50 or part thereof £6,001- 6,250 £70

£2,001 - 6,000 50p per £50 or part thereof £6,251-6.500 £80

£6,001 - 7,500 (*see scale rate list aside) £6,501-6,750 £90

£7,501- 10,000 £1.00 per £50 or part thereof £6,751-7,000 £100

£10,001- 50,000 £1.50 per £50 or part thereof £7,001-7,250 £110

Over £50,000 £2.50 per £50 or part thereof £7,251-7,500 £120

7 May 1969 Scale rate (0.5% to 2%) up to £2,500 1% for relatives (grant houses exempt) 2% up to £6,000 3% up to £50,000 Reduced scale rate under £500


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1 August 1951 Scale rate (0.5% approx) to £500 1% for grant approved and relatives Scale rate (1% to 3%) up to £1,000 1 December 1947 Scale rate (0.5% approx) to £500 1% for grant approved and relatives Scale rate (1% to 3%) up to £1,000 29 April 1910 Scale rate (0.5% approx) to £500 1 January 1892 Scale rate (0.5% approx) to £300 Stocks and Marketable Securities Share Transfer Forms A transfer of stock or marketable securities of any company incorporated in the State is liable to stamp duty at 1% of the consideration paid. Where the transfer takes place electronically through the CREST system a 1% charge also arises. Share Transfer Forms where the consideration is €1,000 or less The Finance (No.2) Act 2008, which was enacted on 24 December 2008, includes the following provision in section 87 which has been introduced in order to reduce the administrative burden on taxpayers and their agents by removing certain low yielding instruments from the stamping process. Any instrument executed on or after 24 December 2008 which transfers stock or marketable securities on sale where the amount or value of the consideration is €1,000 or less, is exempt from stamp duty. To avail of the exemption (from the maximum stamp duty charge of €10) the instrument must be certified as follows: "It is hereby certified that the transaction effected by this instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration which is attributable to stocks or marketable securities exceeds €1,000."


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The certificate should be inserted on the stock transfer form and signed by the transferee. Where the stock transfer form is duly certified, the form will not need to be presented to Revenue for stamping and should be forwarded directly to the company registrar (i.e. the person who maintains the share register of the company and not the Registrar of Companies). A similar treatment will apply in relation to an instrument which, operates as a gift of stocks or marketable securities with the substitution of the value of the stocks or marketable securities for the amount or value of the consideration for the sale. Where the consideration for a particular transfer of stocks or marketable securities is €1,000 or less but the transfer does form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration which is attributable to stocks or marketable securities exceeds €1,000, the instrument will be chargeable to ad valorem stamp duty at 1% and must be submitted to Revenue for stamping. The same applies to a gift in similar circumstances with the substitution of the value of the stocks or marketable securities for the amount or value of the consideration for the sale. The change does not affect electronic transfers of stocks or marketable securities. Accordingly, ad valorem stamp duty at 1% will continue to be chargeable on transfers effected in CREST regardless of the amount or value of the consideration for the sale concerned.


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Reliefs & Exemptions in the Stamp Duties Consolidation Act 1999 (SDCA)

Section Relief Further information/requirements

Section 79 SDCA

Intragroup transactions - conveyances or transfers - exempt. This relief does not apply to leases

ADJN6 (PDF, 65KB) - Draft Statutory Declaration

Part 7.2 Stamp duty work manual (PDF, 143KB)

Section 80 SDCA

Certain company reconstructions and amalgamations – exempt

Section 80 relief – documentary requirements

Share for Undertaking (PDF, 27KB)

Share for Share (PDF, 26KB)


Section 80A SDCA

Demutualisations of assurance companies Part 7.4 Stamp duty work manual (PDF, 143KB)

Section 81AA SDCA

Young trained farmer exemption Leaflet SD2B (PDF, 254KB) Part 7.5 Stamp duty work

manual (PDF, 143KB)

Section 81C SDCA

Farm Consolidation Relief

Leaflet SD81C (PDF, 176KB)

Part 7.6 Stamp duty work manual

Section 82 SDCA

Charities - conveyance/transfer/lease of land -exempt


Section 82A SDCA

Donations to approved bodies Part 7.8 Stamp duty work manual (PDF, 143KB)

Section 82B SDCA

Approved Sports Bodies - Exemption from stamp duty on acquisitions of land by an approved sports body


Section 83B SDCA

Certain Family Transfers - Exemption from stamp duty on certain transfers of farmland


Section 95 SDCA

Commercial woodlands - duty not chargeable on the value of the trees growing on the land

ADJN120 - Woodlands Exemption Form (PDF, 77KB)


Section 96 SDCA

Transfers of property between spouses - exempt


Section 97 SDCA

Transfer of property between divorced couples on foot of certain orders made by Irish or foreign courts - exempt



http://www.revenue.ie/en/tax/stamp-duty/forms/adjn6e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn6e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn6e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn6e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/share_for_undertaking_exchange.pdfhttp://www.revenue.ie/en/tax/stamp-duty/share_for_undertaking_exchange.pdfhttp://www.revenue.ie/en/tax/stamp-duty/share_for_share_exchange.pdfhttp://www.revenue.ie/en/tax/stamp-duty/share_for_share_exchange.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd2b.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd2b.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd2b.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd81c-farm-consolidation-relief.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd81c-farm-consolidation-relief.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd81c-farm-consolidation-relief.pdfhttp://www.revenue.ie/en/tax/stamp-duty/leaflets/sd81c-farm-consolidation-relief.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn120e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn120e.pdfhttp://www.revenue.ie/en/tax/stamp-duty/forms/adjn120e.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdfhttp://www.revenue.ie/en/about/foi/s16/stamp-duty/part-7.pdf

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Section Relief Further information/requirements Section 101 SDCA

Intellectual property Part 7.23 Stamp duty work manual (PDF, 143KB)

Section 101A SDCA

Sale, transfer or other disposition of an EU Single Farm Payment Entitlement


Section 106B SDCA

Housing Authorities and Affordable Homes Partnership


Section 111 SDCA

Oireachtas Funds Part 7.26 Stamp duty work manual (PDF, 143KB)

Section 113 SDCA

Miscellaneous instruments Part 7.27 Stamp duty work manual (PDF, 143KB)

Consanguinity relief This relief applies to transfers of non-residential property to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, adopted child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Duty is charged at half the normal rate. This relief does not apply to leases or transfers of shares. Finance Act 2011 confirmed that consanguinity relief would no longer apply to transfers of residential property with effect from 8 December 2010. Miscellaneous Other Items Liable to Stamp Duty Financial Cards (ATM, Laser, Credit card) Bills of Exchange (including cheques): €0.50 Policies of Insurance (Non-Life) Per Policy:€1 Non-Life Insurance Levy on premiums Section 125 of the SDCA imposes a levy of 3% on the gross amount received by an insurer in respect of certain non-life insurance premiums. The exceptions are re-insurance, voluntary health insurance, marine, aviation and transit insurance, export credit insurance and certain dental insurance contracts. The 3% levy applies to premiums received on or after 1 June 2009 in respect of offers of insurance or notices of renewal of insurance issued by an insurer on or after 8 April 2009.


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In relation to notices of renewal or offers of insurance issued prior to 8 April 2009, a 2% levy applies. Life Assurance Levy on premiums Section 124B of the SDCA provides for a levy of 1% on life assurance premiums. For each quarter, commencing with the quarter ending on 30 September 2009, an insurer must deliver to the Revenue Commissioners a statement showing the assessable amount for the insurer for the quarter. The statement must be accompanied by the amount of stamp duty payable. Levy on health insurers Finance Act 2011 amended section 125A of the SDCA to provide for an increased levy on health insurers. The increased levy applies to all renewals and new contracts entered into from 1 January 2011, at the rate of €66 in respect of each insured person aged less than 18 years and €205 in respect of each insured person aged 18 years or over. eStamping Information, help text and guidelines on the new eStamping system

• Frequently Asked Questions

• Guidance Notes

• Publications

• Mandatory eFiling for Stamp Duty

• Tax Reference Numbers Frequently Asked Questions

• eStamping - FAQs Guidance Notes

• Quick Guide to eStamping

• Additional Guidance Notes on eStamping

• eStamping User Guide for Revenue Online Service (ROS)

• Completing Returns for the transactions involving Contracts or Agreementsunder Section 31 SDCA1999


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• Completing the online Stamp Duty return for CRO Form B6 (Form 52)

• Category of Instruments

• Stamp Duty Forms post eStamping

Helptext on completing eStamping Return Form SDR1 Helptext on completing eStamping Return Form SDR2 Helptext on completing eStamping Return Form SDR3

Publications

• Guide to eStamping

• New System for Stamping Instruments and making Stamp Duty Payments

• Public Notice on transitional arrangements for eStamping


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Residential Property Tax The tax was abolished with effect for all valuation dates beginning on or after 5 April 1997. Residential property tax was an annual tax chargeable on the market value of residential property owned and occupied on a valuation date which is 5 April each year.

• Market Value Exemption Threshold 5 April 2006

• Rates

• Reference Material

• Further information Market Value Exemption Threshold 5 April 2006 The Market Value Exemption Threshold 5 April 2006 is €1,389,000. While Residential Property Tax was abolished with effect from 5th April 1997, a Clearance Certificate procedure remains in place in relation to the sale of certain residential properties to assist the Revenue Commissioners to collect outstanding tax. The value threshold relating to the Residential Property Tax Certificate of Clearance has been increased to €1,389,000 in accordance with the "indexation" provisions in the legislation (Section 100 Finance Act 1983, as amended). The new threshold, which relates exclusively to the tax clearance procedure, applies to house sale contracts executed on or after 5th April 2006. From that date, where the sale consideration for residential property exceeds €1,389,000 the vendor must provide the purchaser with a Certificate from the Revenue Commissioners indicating that all Residential Property Tax due for years for which the tax was in operation has been paid. In the absence of the certificate the purchaser is obliged to withhold a specified amount from the sale consideration and remit same to the Revenue Commissioners (Section 110A Finance Act 1983, as amended).

Rates The tax was charged at the rate of 1.5% on the excess of the market value of all relevant residential properties of a person over a market value exemption limit and was payable provided the income of the household exceeded an income exemption limit. The tax was abolished with effect for all valuation dates beginning on or after 5 April 1997. Reference Material

• Leaflet RP2 - Notes on Residential Property Tax • Leaflet RP4 - Review and Appeal Procedures • Leaflet RP5 - Certificates of Clearance

The leaflets above were accurate at the time of publication


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Section 118 amended Section 110a of the Finance Act 1983 and abolished the Clearance Certificate Scheme for Sales of Residential Property completed on or after 1 February 2007. Further information Contact your local Revenue Office. The contact locator is the quickest way to get the contact details for your local Revenue office. Tax & Duty Manuals - Section 16 FOI Act


http://www.revenue.ie/en/contact/index.htmlhttp://www.revenue.ie/en/about/foi/s16/templates/income-tax-capital-gains-tax-corporation-tax/

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VAT

How do I register for VAT? To register for VAT, you need to complete a Form TR1 (PDF, 240KB) (if you are an individual, partnership or unincorporated body) or a Form TR2 (PDF, 410KB) if you are a company. The form, when completed, should be forwarded to your local Revenue District. Special care should be taken, when completing the form, to include your name, address, PPSN, business type and the relevant tax types. The form must also be signed and dated. Make sure to include a contact phone number with the form when sending it in. This will enable the office to contact you with any queries regarding the information on the form. Who must register for VAT? A trader is generally required to register for VAT for making supplies of goods and/or services, subject to his or her turnover exceeding certain thresholds. The most common are €37,500 for the supply of services, and €75,000 for the supply of goods. Some traders are generally not required to register for VAT, although they may choose to do so. These include traders whose turnover does not exceed the thresholds above, and also farmers. Traders engaged in exempt activities are not permitted to charge VAT. However, they may, in common with farmers, Government Departments and other bodies be required to register for VAT, in order to account for VAT on services or goods received from suppliers outside Ireland. What is the turnover threshold for VAT registration? The principal thresholds applicable are as follows:

(a) €37,500 in the case of persons supplying services, (b) €37,500 for persons supplying goods liable at the reduced or standard rates which

they have manufactured or produced from zero rated materials, (c) €37,500 for persons making mail-order or distance sales into the State, (d) €41,000 for persons making intra-Community acquisitions, (e) €75,000 for persons supplying goods, (f) €75,000 for persons supplying both goods and services where 90% or more of the

turnover is derived from supplies of goods (other than of the kind referred to at (b) above) and

(g) A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.

A taxable person established in the State is not required to register for VAT if his or her turnover does not reach the appropriate threshold above. However, they may opt to register for VAT.


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I am a flat rate farmer and I am going to buy a combine harvester in the UK. Do I have to register for VAT? Yes, if the cost of the machine exceeds €41,000 you are obliged to register for VAT in Ireland in respect of your EU acquisitions only. However you may retain your flat rate status in respect of your normal farming activities. You must pay VAT on the cost of the machine at the standard rate and you are not entitled to take a deduction. I am established in Ireland and only supply services to customers abroad which are taxable where received. Do I have to register for VAT? From 1/01/2010 most services are taxable where received (New Intra-Community VAT Rules on Place of Supply for Services). If you only supply services that are taxable where received you do not have to register for VAT. In fact, traders established in the State who make no taxable supplies in the State, but only supply services that are taxable where received outside the State, are strictly speaking not entitled to register for VAT. However, these traders would then be obliged to recover any VAT incurred in Ireland through Council Directive 2008/9/EC or 13th Directive repayment claim (Repayments to Unregistered Persons). In order to facilitate these traders in recovering VAT, Revenue allows them to apply for VAT registration in the State. The traders should then reclaim any VAT incurred in Ireland in their periodic VAT return, rather than through the Unregistered VAT Repayments Branch. Traders who are already registered in respect of the provision of services in the State should similarly recover all VAT incurred in relation to services supplied abroad that are taxable where received in their normal VAT return. Current & Historic Rates of VAT

• Rate Change - Jobs Initiative 2011 • VAT Rates (Current and Historic) • Abolished/Repealed VAT Rates • VAT Rate Subject Index • VAT Rates Chapter 16 of the VAT Guide 2008 • European VAT Rates • How VAT is applied following a change in VAT Rates Chapter 18 of the VAT

Guide 2008


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VAT Rates (Current and Historic)

Date

Effective From

Standard Rate (%)

Reduced Rate (%)

Second Reduced Rate (%)

Farmers' flat-rate addition (%) Livestock (%)

1 July 2011 21 13.5 9 5.2 4.8 1 January 2010 21 13.5 5.2 4.8

1 December 2008 21.5 13.5 5.2 4.8

1 January 2007 21 13.5 5.2 4.8

1 January 2005 21 13.5 4.8 4.8

1 January 2004 21 13.5 4.4 4.4

1 January 2003 21 13.5 4.3 4.3

1 March 2002 21 12.5 4.3 4.3

1 January 2001 20 12.5 4.3 4.3

1 March 2000 21 12.5 4.2 4.2

1 March 1999 21 12.5 4.0 4.0

1 March 1998 21 12.5 3.6 3.6

1 March 1997 21 12.5 3.3 3.3

1 March 1996 21 12.5 2.8 2.8

1 March 1993 21 12.5 2.5 2.5

1 March 1992 21 16 12.5 2.7 2.7

1 March 1991 21 12.5 2.3 2.3

1 March 1990 23 10 2.3 2.3

1 March 1989 25 10 5 2 2

1 March 1988 25 10 5 1.4 1.4

1 May 1987 25 10 1.7 1.7


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Date Effective

From Standard Rate (%)

Reduced Rate (%)

Second Reduced Rate (%)

Farmers' flat-rate addition (%) Livestock (%)

1 March 1986 25 10 2.4 2.4

1 March 1985 23 10 2.2 2.2

1 May 1984 35 23 5,8,18 2 2 1 July 1983 35 23 5,18 2 2 1 May 1983 35 23 5,18 2.3 2.3 1 March 1983 35 23 5,18 2.3 2.3

1 May 1982 30 18 1.8 1.8 1 September 1981 25 15 1.5 1.5

1 May 1980 25 10 1 1 1 March 1979 20 10 1 1

1 March 1976 20 10 Discontinued Discontinued

1 March 1975 19.5 6.75

Suspended in relation to live cattle

Suspended in relation to live cattle

3 September 1973 19.5 6.75 1 1

1 November 1972 16.37 5.26 1 1

Abolished / Repealed VAT Rates Increased Rates (Discontinued with effect from 1 March 1979) Effective From

Applied to radios, TV sets, record players and records

Applied to passenger Motor vehicles

1 March 1976 40 35 1 March 1975 36.75 36.75 3 September 1973

36.75 36.75

1 November 1972

30.26 30.26

The standard rate applied to these goods from 1 March 1979.


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Special Rates A special rate of 11.11% applied to dances from 1 November 1972 was abolished on 1 March 1976. A special rate of 10% which continued in relation to domestic dwelling development contracts entered into before 25 February 1993 was repealed on 23 November 2010. Rate Change – Jobs Initiative 2011 Introduction of a second Reduced VAT Rate with effect from 1 July 2011 The Minister for Finance has announced that a second reduced VAT rate of 9% will be introduced in respect of certain goods and services (mainly related to tourism) for the period 1 July 2011 to 31 December 2013. The 9% rate applies to restaurant and catering services; hotel and holiday accommodation; admissions to cinemas, theatres, certain musical performances, museums and art gallery exhibitions; fairgrounds or amusement park services; the use of sporting facilities; hairdressing services; printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers. This measure will be provided for in the forthcoming Finance (No. 2) Bill 2011. Supplies of goods and services at the new 9% rate:

• the supply of food and drink (excluding alcohol and soft drinks) in the course of catering or by means of a vending machine (See footnote 1)

• hot take-away food and hot drinks • hotel lettings, including guesthouses, caravan parks, camping sites etc • admissions to cinemas, theatres, certain musical performances, museums, art

gallery exhibitions • amusement services of the kind normally supplied in fairgrounds or amusement

park services • the provision of facilities for taking part in sporting activities by a person other than a

non-profit making organisation • printed matter e.g. newspapers, brochures, leaflets, programmes, maps,

catalogues, printed music (excluding books) • hairdressing services (Note: beauty treatments:- for example, facials, massages,

nail treatments, tanning or sunbed services etc., remain liable at the 13.5% rate).

Supplies of goods and services remaining at the 13.5% rate

• bakery products, excluding bread • residential property • building services related to residential property, including installation • routine cleaning of residential property • minor repairs of bicycles, shoes or leather goods, clothing or household linen • non-oral contraceptive products • goods used for the agricultural production of bio-fuel • agricultural services • certain nursery or garden centre stock • animal insemination services and livestock semen


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• children's car safety seats • waste acceptance and disposal services • greyhound feeding stuff and live poultry and live ostriches • fuel for power and heating, coal, peat, timber, electricity, gas (other than auto LPG),

heating oil • non-residential property • building services related to non-residential property, including installation • routine cleaning of non-residential property • concrete • tour guide services • short-term hiring of cars, boats, caravans, mobile homes, tents or trailer tents • repair and maintenance of cars, other vehicles, vessels and aircraft • services consisting of the care of the human body • jockey services • photographic services including photographic prints • car driving instruction • veterinary services • certain works of art, antiques and literary manuscripts

List of frequently asked questions from businesses relating to a change in VAT rate. What impact will the rate change have on traders? In general, goods and services supplied before 1 July 2011 are liable to VAT at the rate in force at the time of supply, namely 13.5%. However, where goods and services are supplied in June 2011, by a trader who is obliged to issue a VAT invoice, and that trader issues the invoice after 30 June 2011, the rate in force in July applies, namely 9%. A trader supplying goods and services to private individuals should always apply the VAT rate in force at the time of supply. How will credit notes be treated? Any VAT credit note or debit note relating to a supply of goods or services, which contains a VAT adjustment, should show VAT at the rate in force at the time the original invoice was issued. For example, if goods are supplied in June 2011 and a credit note is issued in July 2011 (due perhaps to an adjustment in the price of the goods or services), the rate of VAT on that credit note is 13.5%. This is because the goods or services were supplied when the rate of VAT was 13.5%. How are advance payments received before 1 July 2011 treated? In general, any advance payment, including a deposit, received by a trader before 1 July 2011 is subject to VAT at 13.5%. However, where the trader is obliged to issue a VAT invoice for that payment, and the invoice is issued after 30 June 2011, the new rate applies, namely 9%.


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What is the effect of the change of VAT rate on contracts with fixed interval payments? When payments for continuous supplies, due at fixed intervals over an agreed time-frame, are invoiced and due before 1 July 2011, they should be treated

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