Dáil Éireann Debate, Wednesday - 15 June 2011
133 Deputy Dominic Hannigan asked the Minister for Finance if allowance will be made for persons who bought their homes three months in advance of the reduction of stamp duty and paid stamp duty at the rate of 4%, in view of the fact that they were unaware of the incoming budgetary measure of a reduction of stamp duty in budget 2011; and if he will make a statement on the matter. [15269/11]
View answerThe changes to stamp duty rates, reliefs and exemptions brought into effect by Budget 2011 apply to all instruments executed on or after 8 December 2010. There is also a transitional measure in place for circumstances where the effect of these changes is to increase the stamp duty payable on the transaction. Stamp duty can be paid under the old regime where a binding contract is in place before 8 December 2010 and the instrument is executed before 1 July 2011.
However, where a transaction has taken place prior to 8 December 2010, the stamp duty rate applicable is the rate in force at that time. The rates up to 7 December 2010 are set out in the table below:
|
Aggregate Consideration |
Rate of Duty |
|
First €125,000 |
0% |
|
Next €875,000 (up to €1m) |
7% |
|
Excess over €1,000,000 |
9% |
I have no plans to change the rate of Stamp Duty for property transfers which took place before the budget. The overall transaction costs for property transfers were much lower last year than in recent years, even before the stamp duty changes.
134 Deputy Robert Dowds asked the Minister for Finance when the pension levy will be imposed. [15270/11]
View answer135 Deputy Robert Dowds asked the Minister for Finance the date on which he intends the pension levy to take effect. [15271/11]
View answer136 Deputy Robert Dowds asked the Minister for Finance the work he has undertaken to determine the impact of the pension levy on individual pension funds or schemes; and if he will outline this work. [15272/11]
View answer137 Deputy Robert Dowds asked the Minister for Finance if he proposes that the first tranche of the pension levy will be paid in mid-July 2011 retrospective to January 2011; if pension firms will have the option of asking existing pensioners to pay this back-payment out of their July pensions. [15273/11]
View answerI propose to take Questions Nos. 134 to 137, inclusive, together.
Arising from amendments introduced on Committee Stage to the Finance (No. 2) Bill 2011 (as now passed by the Dáil), a number of changes have been made to the way in which it is proposed that the pension levy will operate. The main changes are considered necessary to facilitate a more efficient implementation and collection process for the levy and to minimize the administrative cost burden on pension funds.
There will now be a single valuation date of 30 June, in relation to most pension funds' assets, in each of the four years of the levy. There will also be a single payment date of 25 September for each of the four years as opposed to two payment dates in each year as originally envisaged. For 2011, for example, the levy for this year will have to be paid by 25 September next.
The stamp duty levy of 0.6% will be applied to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. I cannot say what the precise impact will be on individual funds or schemes, as this depends on whether and to what extent pension fund trustees and Life Offices decide to pass on the levy to individual members, given the particular circumstances of the pension funds or pension plans that they are responsible for. In that regard, I take the view that there is scope for the pensions industry to absorb the impact of the levy from fee income and charges and I have written to them in that regard. In my view, applying a temporary levy to pension fund assets is less damaging economically than raising other taxes. The pension fund levy is a reasonable temporary contribution from these funds to assist in the Jobs Initiative and to boost the economy at this time of national need.
