I am informed by the Revenue Commissioners that data are not collected in a manner that enables the provision of precise details relating to the stamp duty yield associated with the sale of second hand homes. The Revenue Commissioners have, however, advised that the yield from stamp duty in 2002 on all house purchases by first-time buyers was approximately €29 million. As the purchases of new houses certified by the Department of the Environment, Heritage and Local Government as having a floor area of less than 125 metres square are exempt from stamp duty, it is reasonable to assume that by far the major portion of this yield from all house purchases by first-time buyers arises from the purchase of second hand homes.
The Revenue Commissioners advise if the stamp duty exemption for the transfer of residential property for first-time buyers had been raised in 2002 from the current threshold level of €190,500 to a threshold level of €250,000, the cost to the Exchequer would have been approximately €13 million in that year.
I am not in favour of giving a total exemption from stamp duty on second-hand houses to first-time buyers for both Exchequer cost reasons and because there is no guarantee that the tax revenue thus foregone would accrue to the purchasers. However, I should point out that first-time buyers can avail of a significantly reduced rate of stamp duty in a number of the price bands associated with the purchase of second-hand residential property compared with other owner-occupiers, and also compared to investors who pay stamp duty at the full rate on any residential property purchased, whether new or second-hand.
Any change to the current rates or thresholds associated with stamp duty on residential property for first time buyers would have to be considered in the overall context of the 2004 budget and Finance Bill.