Dáil Éireann debate -
Tuesday, 20 Mar 2001

Vol. 532 No. 4

Written Answers. - Stamp Duty.

Deirdre Clune

Question:

277 Ms Clune asked the Minister for Finance the number of people affected by the increase to 9% in stamp duty on second homes and homes for investment purposes since its introduction; and if he will make a statement on the matter. [7757/01]

Minister for Finance (Mr. McCreevy):

I am informed by the Revenue Commissioners that as at 12 March this year, 801 persons were affected by the increase to 9% in stamp duty on second homes and homes for investment purposes since its introduction.

In the light of developments in the housing market since last summer, the Government decided to reduce the rate of stamp duty for investors in new residential property from a flat 9% and an amendment to this effect was introduced on Committee Stage of the Finance Bill, 2001. This change applies to conveyances made on and from 27 February 2001. However, the investor rate for second-hand properties will remain at 9%. This change to the stamp duty regime will leave the investor rate unchanged in the second-hand market while reducing it for new property, thus providing a supply incentive in this area. Limiting the concession to new housing maintains the relative advantage of first-time purchasers in the second-hand market which accounts for two thirds of first-time purchaser transactions. This stamp duty change will also increase the attractiveness of tax incentives for student accommodation, which are new build.

The following table outlines the rates applying to conveyances of residential property on and from 27 February 2001.

	First Time Buyers*	Other Owner Occupiers*	Investors New Properties	Investors 2nd hand Properties
Up to £100,000	Nil	Nil	3.00%	9.00%
£100,001 – 150,000	Nil	3.00%	3.00%	9.00%
£150,001 – 200,000	3.00%	4.00%	4.00%	9.00%
£200,001 – 250,000	3.75%	5.00%	5.00%	9.00%
£250,001 – 300,000	4.50%	6.00%	6.00%	9.00%
£300,001 – 500,000	7.50%	7.50%	7.50%	9.00%
Over £500,000	9.00%	9.00%	9.00%	9.00%

*No stamp duty is payable by an owner-occupier on the purchase of a new house up to 125 square metres; in the case of a new house bought by an owner-occupier above this size, the stamp duty is charged only on the site value or one quarter of the total value of the site and the house, which ever is greater.