Dáil Éireann debate -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Stamp Duty.

Michael McDowell

Question:

86 Mr. M. McDowell asked the Minister for Finance if his attention has been drawn to the fact that engaged couples who purchase a house with a view to living in it and whose intended marriage falls through are obliged to pay stamp duty if one party to the engagement transfers his or her interest in the property to the other as part of a settlement of their affairs; whether the Revenue Commissioners have any powers to exempt couples in such situations from payment of stamp duty on grounds of hardship or on compassionate grounds; the steps, if any, he intends to take to avoid the significant injustice caused by this legal anomaly which does not affect couples who are married and are separating; and if he will make a statement on the matter. [15277/96]

Minister for Finance (Mr. Quinn)

I am aware that transfers from one party to an engagement of his or her interest in what was to be the family home to the other party to the engagement are liable to stamp duty. The Revenue Commissioners have no powers to mitigate the amount of stamp duty chargeable on any document, including a document transferring property.

The Deputy has pointed out that where such a property transfer takes place between married couples who are separating no stamp duty arises. This is because there is an exemption from stamp duty on transfers of property between spouses. However, I consider that this spouse situation is quite different from the engaged couples situation. Consequently, I have no plans to introduce an exemption to cover transfers effected in the circumstances outlined by the Deputy.