Vol. 511 No. 3
185 Mr. R. Bruton asked the Minister for Finance if he will introduce relief from stamp duty for older people selling their home to move to a smaller property in order to allow them to release asset value to support the higher costs of old age and to release housing property with low utilisation onto the market. [24071/99]
Stamp duty rates for all residential property were reduced significantly by the Government in the Finance (No. 2) Act, 1998, arising out of the first Bacon report on house prices.
In addition, there is no stamp duty on the sale of new residential property where the purchaser is an owner occupier and the house is not greater than 125 square metres. If a new house is more
than 125 square metres, stamp duty is charged only on the site cost or a quarter of the value of
the house, whichever is the greater.
The stamp duty yield in 1998 was £541 million. This is a significant contribution to the Exchequer and helps reduce the tax take on employment income. The stamp duty reductions in 1998 halved the rate of stamp duty at the lower end of the residential property. These reductions have been of benefit to all house buyers and this general reform of the rates was considered more beneficial to the housing market rather than the introduction of specific stamp duty exemptions/reliefs. As regards the release of asset value where the seller of the larger house is an older person, I should point out that such a seller will gain significantly from the capital gains tax exemption on the disposal of a principal private residence.
