Richard Bruton
Question:108 Mr. R. Bruton asked the Minister for Finance the cost of eliminating stamp duty for first-time buyers; and if he will make a statement on the matter. [27966/03]
Written Answers. - Stamp Duty.
The Revenue Commissioners have advised that the yield from stamp duty in 2002 on all house purchases by first-time buyers was approximately €29 million. This would have been the cost to the Exchequer in 2002 if the stamp duty liability for first-time buyers had been abolished. A current cost figure is not available.
I am not in favour of giving a total exemption from stamp duty 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 the purchases of new houses certified by the Department of Environment, Heritage and Local Government as having a floor area of less than 125 metres square are exempt from stamp duty for all owner-occupiers including first-time buyers. Furthermore, 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.