Dáil Éireann debate -
Tuesday, 25 Feb 2003

Vol. 562 No. 1

Written Answers - Stamp Duty.

Richard Bruton

Question:

284 Mr. R. Bruton asked the Minister for Finance if he will consider modifications to the stamp duty code in order that a new house which had reached the 25 square metre ceiling could be adapted by the provision of an extension, without incurring stamp duty, where that adaptation and extension were required to meet the needs of a person with special needs; and if he will make a statement on the matter. [5562/03]

Minister for Finance (Mr. McCreevy)

While stamp duty may arise on the purchase of a house, no stamp duty arises on the adaptation or extension of a house already purchased.

New residential property is exempt from stamp duty for any owner-occupier where it is under 125 square metres. If a new house is over 125 square metres, stamp duty is charged on the site value or one quarter of the total value of the property, whichever is the greater. This means that, for owner-occupiers who are not first-time buyers, stamp duty will not arise on a new house where the site is valued at under €127,000 and the house is valued at less than €508,000.

For first-time buyers of new houses, stamp duty will not arise if the value of the site is under €190,500 and the house value is under €762,000. They will also, thereafter, pay a lower rate of stamp duty than other purchasers of a second-hand house, as long as the site value is less than €635,000 and the house is valued at less than €2.54 million.

I consider the stamp duty relief for new houses to be quite generous, and I have no plans to extend further relief from stamp duty to larger and or more expensive new houses.