Jim Mitchell
Question:165 Mr. J. Mitchell asked the Minister for Finance if he will now agree to reverse the increase in stamp duty and to re-instate mortgage interest relief for investors. [25636/01]
Vol. 542 No. 6
165 Mr. J. Mitchell asked the Minister for Finance if he will now agree to reverse the increase in stamp duty and to re-instate mortgage interest relief for investors. [25636/01]
In the Finance (No. 2) Act, 2000, I made significant changes to the stamp duty regime on transfers of residential property arising from the recommendations of the third Bacon report into the housing market. These resulted in reductions in stamp duty rates for first-time buyers in respect of houses up to £300,000 – 381,000 – in price, while other owner-occupiers also benefited from the rates revision at the lower end of the market.
That Act introduced a three-tiered stamp duty structure for first-time buyers, owner-occupiers other than first-time buyers, and investors. I increased the exemption from stamp duty from £60,000 – 76,200 – to £150,000 – 180,500 – in the case of first-time buyers and for other owner-occupiers to £100,000 – 127,000 – and reduced the stamp duty rates on transfers of residential property at the lower end of the market for first time buyers and other owner-occupiers in excess of these thresholds. In particular, the revised regime is structured to facilitate those who are trying to buy their first home and who are faced with particular difficulties in the market at the present time. Many first time owner-occupier buyers are now either exempt from stamp duty or pay at a reduced rate. However, owner-occupiers, who are not first-time buyers, also benefit generally from the revised stamp duty rates, as I have already indicated.