I propose to take Questions Nos. 72, 107 and 137 together.
Stamp Duty is a charge on documents, which are mostly legal documents, used in the transfer of property. Where a property is purchased, stamp duty is charged on the conveyance or transfer effecting change of legal ownership of the property concerned.
If there is no conveyance, there is no stamp duty. A builder or developer can, therefore, obtain a licence from a vendor to build on land owned by the vendor without incurring a stamp duty charge at that stage of the venture. Once the buildings, whether commercial or residential, are completed, the conveyances or transfers of such properties (i.e. both land and buildings) to purchasers are chargeable to stamp duty in the normal manner, unless specific exemptions are available to the purchasers.
The number of cases involved is not available as there is no requirement on a builder or developer to submit any documents to Revenue for stamping in relation to a building licence arrangement.
Taking account of the proliferation of developments generally in recent times, and in the context of its targeted project in the construction sector in 2006, the Revenue Commissioners are reviewing the use of licensing and similar arrangements, as part of their audit and compliance programmes. The review, as with Revenue's overall approach to its business, will focus on risk.
I have asked Revenue to let me know the outcome of their review and I will decide what action, if any, is required bearing in mind the effect on the housing market and the cost to the Exchequer.