I am informed by the Revenue Commissioners that data is 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, including those to first-time buyers. The Revenue Commissioners have, however, advised that the yield from stamp duty in 2002 on all house purchases by first-time buyers was €29 million approximately. As 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 and that this would have been the cost of such exemption in 2002. A current cost figure is not available.
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.