Dáil Éireann debate -
Tuesday, 20 May 2003

Vol. 567 No. 1

Written Answers. - Stamp Duty.

Seán Crowe

Question:

206 Mr. Crowe asked the Minister for Finance if he will make a statement justifying his decision to raise stamp duty on land zoned for residential development by stating the increase could be passed on to new house buyers. [13649/03]

Minister for Finance (Mr. McCreevy)

All land, as such, is regarded as non-residential property for stamp duty purposes irrespective of whether it has been zoned for residential development.

In my budget speech on 4 December 2002, I outlined the changes made to the rate and threshold structure effective from budget day and applicable to non-residential property. Prior to these budget changes, the structure for charging stamp duty on non-residential property had been unchanged since 1 September 1990. While the top rate of stamp duty for certain categories of residential property had, for several years, been 9%, the top rate for non-residential property had remained at 6%. The new rates introduced ensure that the same top rate of 9% exists for both resi dential and non-residential property. The details of the changes are set out in the following table.

Stamp Duty on non-residential property – budget 2003 rate changes

Pre-Budget 2003Threshold	Rate	New Threshold
€		€
Up to 6,350	0%	Up to 10,000
6,351 – 12,700	1%	10,001 – 20,000
12,701 – 19,050	2%	20,001 – 30,000
19,051 – 31,750	3%	30,001 – 40,000
31,751 – 63,500	4%	40,001 – 70,000
63,501 – 76,200	5%	70,001 – 80,000
Over 76,200	6%	80,001 – 100,000
N/A	7%	100,001 – 120,000
N/A	8%	120,001 – 150,000
N/A	9%	Over 150,000

New residential property up to 125 sq. m. where a floor area certificate has been issued by the Department of the Environment and Local Government is exempt from stamp duty where it has been purchased by, or on behalf of, persons who will occupy it as their only or principal place of residence. If in such a case the residential property being purchased is greater than 125 sq. m., duty is charged on the site value or one quarter of the total value of the property, whichever is the greater.

Stamp duty is a substantial contributor to the Exchequer and this helps to fund public services while keeping the direct tax burden low thereby facilitating continued economic success. I have no recollection of making the statement referred to by the Deputy in justifying the stamp duty increase.