Kevin Humphreys (Dublin South East, Labour)
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Question 217: To ask the Minister for Finance the taxes, levies, charges or stamp duties that currently apply to transactions involving financial instruments, such as bonds, shares, securities, derivatives or structured financial products in Ireland; the rules governing each and the specific tax take for each one in 2011; and if he will make a statement on the matter. [25003/12]

Michael Noonan (Limerick City, Fine Gael)
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Stamp duty is a duty charged on a wide range of legal and commercial documents or instruments as opposed to the transaction underlying the instruments. The stamp duty chargeable in relation to transactions involving financial instruments is as follows.

Stocks and Marketable Securities

Stamp duty at the rate of 1% is chargeable on the instrument of transfer, including electronic transfers which are deemed by legislation to be instruments of transfer. The 1% rate applies to consideration (or market value if greater) paid in respect of the transfer. The charge also applies to an option over shares.

In 2011 the stamp duty from stocks and marketable securities was €194,764,520.

Bonds

Section 85 of the Stamp Duties Consolidation Act 1999 provides for an exemption for the transfer of loan capital (including bonds) which does not carry a right of conversion into stocks or marketable securities.

Financial Services Instruments

Section 90 of the Stamp Duties Consolidation Act 1999 provides for an exemption from stamp duty for a range of instruments which are used primarily in the financial services industry. The exemption does not apply if the instruments relate to Irish immovable property or to Irish stocks or marketable securities. Section 90 also provides for an exemption for the transfer of American Depository Receipts which are dealt in on a recognised stock exchange situated in the United States of America or Canada.

The transactions concerned are VAT-exempt and are not charged on a transactions basis to income tax or corporation tax.