Dáil Éireann díospóireacht -
Thursday, 28 Jan 1999

Vol. 499 No. 2

Written Answers. - Stamp Duty.

Willie Penrose

Ceist:

92 Mr. Penrose asked the Minister for Finance the reason a purchaser has to pay stamp duty on the full amount of a home purchase, for example £80,000, when there is an exemption from stamp duty on purchases up to and including £60,000; if he will consider amending this to take cognisance of this anomaly; and if he will make a statement on the matter. [2290/99]

Minister for Finance (Mr. McCreevy)

In the case of property transfers, stamp duty, at the appropriate rate, has always been levied on the full amount of the relevant value transferring. It is not correct to state that there is an anomaly in the present system. The idea of introducing a system whereby the rate of duty would be applied on successive bands of property values has been periodically examined in the past. The last such occasion on which a detailed examination was carried out was during the period 1996-97. At that time it was estimated that the introduction of such a system would cost about £40 million per annum.

The Bacon report which examined house prices last year and which was acted upon immediately by the Government recommended a general reduction in the rates of stamp duty. The rationale behind the stamp duty recommendation contained in the Bacon report was to create mobility within the housing market. The Government accepted this rationale and as the Deputy knows, reduced the rates of duty and changed the bands applying to all residential property of less than £500,000 in value.

Given that the Government recently changed the stamp duty regime applying to residential property and because of the very significant costs that would be involved in the Deputy's proposal, I have no plans to make further changes to the stamp duty regime at this time.