Matheson


News and Insights

Print this page

Search News & Insights


Ireland reduces the rate of stamp duty on the acquisition of business assets

AUTHOR(S): Gerry Thornton
PRACTICE AREA GROUP: Tax
DATE: 30.01.2012

Ireland recently enacted a reduction to the rate of stamp duty on the acquisition of business assets subject to stamp duty.

This includes goodwill, the benefit of contracts and commercial real estate. The stamp duty rate has been reduced considerably from a top rate of 6% to a lower flat rate of 2%. This new rate of 2% will now apply to transfers executed on or after December 7 2011.

While the focus of this reduction in stamp duty has mainly related to a hoped for stimulus for the Irish real estate market, the reduction will also have an important and positive impact on the structuring of Irish corporate acquisition (M&A) transactions, as asset sales in Ireland will now be significantly more attractive in stamp duty terms than previously. The stamp duty costs of an asset purchase at the new reduced rate of 2% of the consideration for chargeable assets (for example, goodwill) can now compare more favourably to the 1% stamp duty on a share purchase. This is particularly the case as not all business assets purchased as part of an asset purchase may be chargeable assets (subject to the 2% charge) but the entire purchase price for a share purchase will be subject to the 1% charge. The stamp duty reduction is therefore a positive measure which gives more commercial flexibility in structuring the acquisition of Irish businesses.

________________________________________________________________

© Matheson 2012

This article first appeared in International Tax Review (1 February 2012).

The Information in this document is provided subject to the Legal Terms and Liability Disclaimer contained on the Matheson website. The material is not intended to provide, and does not constitute, legal or any other advice on any particular matter, and is provided for general information purposes only.

For further information, please contact Gerry Thornton, Partner in the Tax Department at Matheson; email: gerry.thornton@matheson.com or telephone +353 1 232 2000.

 

BACK TO LISTING

Matheson Snapshot


About cookies on our website

Following a revised EU directive on website cookies, each company based, or doing business, in the EU is required to notify users about the cookies used on their website.

Our site uses cookies to improve your experience of certain areas of the site and to allow the use of specific functionality like social media page sharing. You may delete and block all cookies from this site, but as a result parts of the site may not work as intended.

To find out more about what cookies are, which cookies we use on this website and how to delete and block cookies, please see our Which cookies we use page.

Click on the button below to accept the use of cookies on this website (this will prevent the dialogue box from appearing on future visits)