Bernard Durkan (Kildare North, Fine Gael)
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133. To ask the Minister for Finance if he might indicate, in respect of a recent tax appeals commission, TAC, ruling wherein both Revenue and the TAC held that the disposal of a portfolio of loans by a vulture fund was “the disposal of an interest in land”, and therefore subject to capital gains tax, why the purchase of the portfolio of loans is not subject to stamp duty where the purchase is of an acquisition in land; and if he will make a statement on the matter. [25501/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I assume the Deputy is referring to a recent Tax Appeals Commission decision, whereby it was determined that the disposal of a portfolio of loans by a non-resident bank constituted the disposal of “an interest in land” which is within the charge to Irish capital gains tax (CGT) imposed on non-residents as provided for in section 29(3) of the Taxes Consolidation Act (TCA) 1997.

In relation to the Deputy's question as to why the purchase of a portfolio of loans is not subject to stamp duty in similar circumstances, I am advised by Revenue that the disposal of a portfolio of loans is generally a transaction within the scope of stamp duty. However, an exemption from the charge may be available under the Stamp Duties Consolidation Act (SDCA) 1999. The availability of such an exemption will generally not be affected by whether loans comprised in the portfolio relate to land and will depend on a number of conditions being met.

The exemptions include, in particular, section 85 of the SDCA 1999, which provides for an exemption from stamp duty on:

• the issue of loan capital or any Government loan;
• the transfer of companies’ loan capital;
• the issue or transfer of securities issued by a qualifying company within the meaning of section 110 TCA 1997;
• the issue, transfer or redemption of loan capital issued by a company to raise finance to acquire, develop or lease aircraft.