asked the Minister for Finance whether he is aware that, in the usual cases of transfer of lands from father to son where an annuity with the usual rights of residence and support are reserved to the father, the Revenue Commissioners, under the provisions of the Finance (No. 2) Act, 1947, capitalise the annuity at 12 years' purchase and charge duty at 5 per cent. on such capitalised sum, and whether he will introduce proposals for legislation so to amend the law that the rate in such cases will be reduced to 1 per cent.
Ceisteanna—Questions. Oral Answers. - Transfers of Land.
As regards the first part of the question, the Deputy appears to be under a misapprehension.
Where land is transferred from father to son and an annuity is reserved to the father, the Revenue Commissioners—subject to what I shall say in a moment—treat the instrument as a voluntary disposition coming within sub-section (6) (b), of Section 13 of the Finance (No. 2) Act, 1947, and so falling outside the scope of the £5 per cent. rate.
The Revenue Commissioners deal with the instrument in this manner unless they are of opinion that, by reason of the adequacy of the consideration, the transfer does not confer what the law calls a "substantial benefit" on the son.
In arriving at the consideration, regard must be had to Section 56 (3) of the Stamp Act, 1891. Section 56 (3) of the Stamp Act, 1891, provides broadly that, where the consideration for a conveyance consists wholly or partly of money payable periodically during any life or lives, the consideration is to be computed by reference to the amount of money which may be payable during the 12 years next after the date of the instrument.
If no substantial disparity exists between the value of the land on the one hand and, on the other, the consideration passing, the Revenue Commissioners naturally cannot accept that the transfer is in the nature of a voluntary disposition, and so the higher rate of duty must apply.
In view of what I have stated, the second part of the question does not arise.