McCreevy Abolishes Stamp Duty On Intellectual Property Transfers

by Robin Pilgrim, LawAndTax-News.com, London

05 December 2003

Irish Finance Minister, Charlie McCreevy's decision to remove stamp duty on transfers of intellectual property (IP) has been welcomed, although there is some confusion as to the likely extent of the measure.

Currently, purchasers of intellectual property such as patents, copyrights, and trademarks are obliged to pay stamp duty at a rate of 9% on the gross value of the IP in question.

However, concern has been expressed about the fact that Mr McCreevy made no mention of goodwill (the most common type of IP on which stamp duty is currently paid) in his budget speech on Wednesday, suggesting that it may not be included in the exemption.

The estimated costs of the measure, predicted to be around 300,000 euros over one year, provide support for suggestions that goodwill may not be included.

Speaking with regard to the stamp duty exemption following the unveiling of his financial statement, the Finance Minister explained that:

"There will be consultations with relevant bodies about the scope of the provision before publication of the Finance Bill."

Recommended