Michael Ring
Question:183 Mr. Ring asked the Minister for Finance if the abolition of stamp duty applies only to first time buyers of houses or to all house buyers; and if he will provide full details of this regulation. [14890/98]
Written Answers. - Stamp Duty.
The new rates of stamp duty for residential property are as follows:
|
Residential property valued at up to and including £60,000 |
exempt |
|
In excess of £60,000 but not exceeding £100,000 |
3 per cent |
|
In excess of £100,000 but not exceeding £170,000 |
4 per cent |
|
In excess of £170,000 but not exceeding £250,000 |
5 per cent |
|
In excess of £250,000 but not exceeding £500,000 |
7 per cent |
|
In excess of £500,000 |
9 per cent |
These rates of stamp duty apply to all second hand residential property, regardless of the status of the purchaser, i.e. first time buyer or second time buyer.
There is a full exemption from stamp duty for transfers of new houses and apartments with a floor area of 125 square metres or less. Transfers of new residential property with a larger floor area attract stamp duty based only on the site value, subject to a minimum site value of one quarter of the full house value. This favourable stamp duty treatment of new residential property is available only to owner-occupiers. If a new residential property is purchased by a non-owner-occupier, then stamp duty based on the rates set out above, at the appropriate rate, is levied on the total value of the transaction.
The stamp duty proposals contained in the Finance (No. 2) Act, 1998, are designed to restore a balance to the housing sector — a balance between supply and demand, between investors and owner occupiers and between tax concessions and removal of reliefs.