Dáil Éireann debate -
Wednesday, 26 May 1999

Vol. 505 No. 4

Written Answers. - Stamp Duty.

Eamon Gilmore

Question:

40 Mr. Gilmore asked the Minister for Finance the revenue from stamp duty on new houses received from individuals who have certified they are purchasing these for purposes other than their intended dwelling house; the number of houses in relation to which a declaration has been made; and if he will make a statement on the matter. [13850/99]

Minister for Finance (Mr. McCreevy)

I am informed by the Revenue Commissioners that the data are not maintained in a fashion which would allow for an estimate of the stamp duty yield from the sales of new residential property to non-owner-occupiers to be provided. The yield from stamp duty for the first four months of this year for all property transactions was £117 million, of which it is estimated that somewhere in the region of £50 million was accounted for by residential property.

As the Deputy will be aware, as part of the Government response to the first Bacon Report on housing, I revised the stamp duty code in the 1998 Finance (No. 2) Act. As well as reducing the rates of stamp duty applying on residential property valued under £500,000, I also changed the rules regarding the application of stamp duty on certain categories of new residential property sales. In general stamp duty does not apply to the sale of new owner-occupier residential property, except where the property is larger than 125 square metres, where stamp duty is levied on one quarter of the aggregate of the site and construction costs. However, where the purchaser intends using the residential property for reasons other than as their principal private residence, then stamp duty at the normal residential rates apply on the total value of the sale regardless of whether the property has a floor area certificate or not. The reason for this change was to address the imbalance between owner-occupiers and investors in the new housing market. While this measure was introduced with effect from 23 April 1998 transitional arrangements applied until 31 March of this year, which subject to certain conditions being met allowed for the previous stamp duty rules to apply in such transitional cases.