Cowen Amends Irish Share Duty Reliefs

by Jason Gorringe, Tax-News.com, London

26 September 2007

Ireland's Finance Minister, Brian Cowen has signed an order that will commence the provisions of section 109 of the Finance Act 2007 with effect from 1 October 2007.

Section 109 amends existing provisions of the Stamp Duties Consolidation Act 1999 and inserts two new sections, section 75 and section 75A into that Act.

As a consequence, from 1 October 2007 the following reliefs and exemptions are abolished: stamp duty exemption for market makers on the Irish Stock Exchange and the London Stock Exchange; stamp duty relief for member firms (broker/dealer relief) of those exchanges; entitlement to repayment of stamp duty, or 'closings relief, under section 73(1)(b) of the Stamp Duties Consolidation Act 1999, subject to transitional arrangements.

The order signed by Cowen will create a new stamp duty relief for “recognised intermediaries” where they acquire Irish securities on any exchange or market operated by: the Irish Stock Exchange Limited; the London Stock Exchange plc; Plus Markets plc and markets operated by it; and POSIT operated by Investment Technology Group Limited.

A specific stamp duty exemption is also available on certain transfers of Irish securities in a settlement chain involving a Central Counterparty.

The Revenue Commissioners have designated, with effect from 1 October 2007, Plus Markets plc and markets operated by it, and POSIT operated by Investment Technology Group Limited, as an exchange or market for the purposes of the new intermediary relief.

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