Mary Upton
Question:231 Dr. Upton asked the Minister for Finance if he will ease the application of stamp duty to first time buyers; and if he will make a statement on the matter. [21878/03]
Written Answers. - Stamp Duty.
New residential property is exempt from stamp duty for any owner-occupier, including first-time buyers, where it is less than 125 sq m. If a new house is more than 125 sq m, stamp duty is charged on the site value or one quarter of the total value of the property, whichever is the greater. With regard to the transfer of second-hand residential property, first-time buyers are exempt from stamp duty where the consideration is up to €190,500 and they can avail of significantly reduced rates in stamp duty compared with other purchasers where the consideration is up to €381,000.
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 forgone would accrue to the purchasers. I am informed by the Revenue Commissioners that if the stamp duty exemption for the transfer of second-hand 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. 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.