Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

In general, the purchase of company shares is liable to stamp duty at 1%.

When stamp duty was increased from 2% to 6% in budget 2018, an anti-avoidance measure in section 31C was included to ensure the new 6% rate would also apply where non-residential property, held by an entity such as a company, is indirectly sold by way of a sale of shares in the company and, effectively, the company itself. This section applies the higher 7.5% rate for non-residential property to the acquisition of entities that deal in land or the secure development of land for non-residential properties. The charge applies where entities derive the greater part of their value from Irish property and hold land where there is little or no activity carried on by the business and hold and develop land for residential or non-residential purposes, or where the purchase of the shares, interests in a partnership or units results in a change in control of the entity and, thus, a change in the control of land or buildings. Not all companies deriving value from property are affected. Sales of the following types of entities should not attract the 7.5% charge provided they are carrying on an active business: hotels, car park businesses where the land was acquired for that business, office rental businesses; and crèches.

In earlier debates, I touched on how much work has been done in this area since the debate on the Finance Bill last year. For this reason I do not believe it is an appropriate time to undertake a further report in this area. However, this is an area my Department will continue to monitor and I have asked officials to continue to scrutinise the taxation of various corporate structures over the coming year with a view to taking further action if necessary. The stamp duty treatment that applies to the transfer or sale of shares is a measure of the general application which applies to shares in all Irish companies. However, the anti-avoidance measure I have outlined is wide-ranging and targets companies, partnerships, IREFs or connected persons, and it is for those reasons I cannot accept the Deputy's amendment.