Vol. 562 No. 1
263 Mr. Andrews asked the Minister for Finance if he will consider a provision similar to section 81 of the Stamp Duties Consolidation Act 1999, which affords a reduction in stamp duty to young farmers in respect of the purchase by young persons generally of private residential owner occupied houses. [5176/03]
The young trained farmer relief from stamp duty is a special exemption, designed to encourage young people entering farming to obtain a high level of training and to generally encourage the transfer of land to a more progressive generation of farmers. It is not applicable where the farmer has not achieved the necessary qualifications. The stamp duty code in relation to residential property is quite different to the regime that applies to non-residential property. Owner occupiers purchasing new homes under 125 sq. m. are exempt from paying stamp duty, and if it is over 125 sq. m., the stamp duty applies on the value of the site or on 25% of the value of the property, whichever is the greater. For first time buyers of new houses, this means that they only pay stamp duty if the house is over 125 sq. m. and either the value of the site exceeds €190,500 or the value of the property exceeds €762,000.
First time buyers of second hand residential property do not pay stamp duty if the value of the property is under €190,500 and pay a reduced rate if the property is less than €381,000. The top rate of 9% applies only on residential property valued over €635,000, as opposed to non-residential property such as agricultural land, where it applies on property valued over €150,000. I consider the present threshold limits and rates to be quite generous and I have no plans to make a provision of the type suggested by the Deputy.
