Dáil Éireann díospóireacht -
Wednesday, 10 May 2000

Vol. 518 No. 6

Written Answers. - Stamp Duty.

Seán Haughey

Ceist:

239 Mr. Haughey asked the Minister for Finance if he will remove stamp duty on second hand houses for first time buyers in order to help first time buyers purchase a house; the consideration, if any, given to this suggestion previously; and if he will make a statement on the matter. [12391/00]

Minister for Finance (Mr. McCreevy)

I have no plans to remove stamp duty on second hand houses for first time buyers. 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.

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 would make the second hand house market more accessible for first time purchasers.

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. The cost of eliminating stamp duty for first time buyers of second hand houses would be at least £50 million.