Richard Bruton
Question:101 Mr. R. Bruton asked the Minister for Finance the cost of eliminating stamp duty for first-time buyers; and if he will make a statement on the matter. [23053/02]
Written Answers. - Stamp Duty.
The Revenue Commissioners do not maintain separate records of the stamp duty paid by first time buyers per se. However, they do have records of the stamp duty paid by first time buyers who qualify for reduced rates under first time buyer relief which was introduced by the Finance (No. 2) Act, 2000, with the insertion of a new section 92B into the Stamp Duties Consolidation Act, 1999. This section provides relief by way of exemption or reduced rate from certain rates of duty otherwise applicable on the purchase of second-hand houses and apartments where the buyer qualifies as a first time buyer and complies with certain conditions attaching to the relief. The Revenue Commissioners estimate that the yield foregone by eliminating stamp duty for first time buyers who qualify for relief under section 92B would be in the region of €2.4 million per annum.
In the case of new houses and apartments, all owner occupiers, including first time buyers, are generally exempt from stamp duty where the property is 125 square metres or less. The Revenue Commissioners do not have an estimate of the Exchequer cost of this relief in relation to first time buyers. There are no records concerning the amount of stamp duty paid by first time buyers who do not qualify for relief and who consequently pay duty at the normal rates applicable. In the case of second hand houses, this arises where consideration is in excess of €381,000. In the case of new houses and apartments, a first time buyer may have a stamp duty liability if purchasing a new house or apartment over 125 square metres, if the site value is in excess of €190,500 or the total value is in excess of €762,000. It is also the case that where the first time buyer is not going to occupy the house or apartment as his or her only or principal place of residence, then the normal rates of stamp duty apply.
As the Deputy will appreciate, it has been the practice for many years for the Minister for Finance not to comment on possible changes in taxation in the weeks prior to the budget.