Vol. 518 No. 4
160 Mr. R. Bruton asked the Minister for Finance the plans, if any, he has to review the application of stamp duty to first time buyers of second hand houses; the cost to the Exchequer of relieving first time buyers from this duty; and if he will make a statement on the matter. [11939/00]
Stamp duty rates for residential property were reduced significantly by the Government as part of the package of taxation measures in the Finance (No. 2) Act, 1998 arising out of the Bacon report on house prices. This reduction in stamp duty rates has been of benefit to all house purchasers, including first time buyers of second hand houses.
The Bacon report considered that reductions in stamp duty on all residential property would lead to additional turnover in the second hand house market thus increasing the range of housing available to first-time buyers. Reducing stamp duty on residential property in this way has made the second hand house market more accessible for first-time purchasers.
At that time the introduction of a specific exemption or relief for first-time buyers was considered. However, given the significant estimated costs involved, any specific exemption for first-time buyers would have prevented a reduction in the rates for residential property generally.
For these reasons the Government considered that reductions in the stamp duty rates applicable to all residential property, as recommended in the Bacon report, would be more beneficial to first-time buyers and the housing market in general than a specific total exemption aimed at first-time buyers only.
