Question:
110 Mr. Hayes asked the Minister for Finance the estimated gain to the Exchequer if the relief from stamp duty on new houses was restricted to owner occupiers; and if he will make a statement on the matter. [1910/98]
Written Answers. - Stamp Duty Relief.
I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested by the Deputy to be provided. However, the annual cost to the Exchequer of the stamp duty relief on new houses given the current yeild is estimated to be in the region of £90-£100 million. The necessary data in relation to the purchase of new houses by owner occupiers are not available.
The targeting of stamp duty reliefs in favour of new houses takes account, inter alia, of the fact that most new house sales are subject to VAT at 12.5 per cent, whereas sales of second hand houses generally are not. These reliefs are also designed to encourage the building of new houses and thereby to support employment in the construction industry.