Michael Noonan
Ceist:250 Mr. Noonan asked the Minister for Finance the estimated cost to the Exchequer of waiving stamp duty for all first time purchasers of houses; and if he will make a statement on the matter. [23309/00]
Written Answers. - Stamp Duty.
The Revenue Commissioners inform me that up to date reliable statistics are not yet readily available to enable the cost to the Exchequer of eliminating stamp duty for all first time buyers of houses to be calculated. However, many first time owner-occupier buyers are, at present, either exempt from stamp duty or pay at a reduced rate. The position is as follows. In the Finance (No 2) Act, 2000, I increased the exemption from stamp duty from £60,000 to £150,000 in the case of first-time owner-occupier purchasers. Also, rates of stamp duty for first-time buyers at values in excess of £150,000 and up to £300,000 are now 25% less than for other owner-occupiers.
In addition, there is no stamp duty on the sale of new residential property where the purchaser is an owner-occupier and the house is not greater than 125 square metres. If a new house in such cases is more than 125 square metres, stamp duty is charged on the site value only, subject to a minimum site value of one quarter of the full house value. In such cases, the £150,000 exemption for a first time owner-occupier purchaser would also apply.
In increasing the first time buyer limit from £60,000 to £150,000 and in giving a 25% reduction on the other owner occupier category of rates applying between £150,000 and £300,000, I believe I have responded fully, as recently as last June, to the needs of first time buyers. I will keep the position under review.