Dáil Éireann díospóireacht -
Wednesday, 11 Apr 2001

Vol. 534 No. 4

Written Answers - Tax Code.

Noel Ahern

Ceist:

126 Mr. N. Ahern asked the Minister for Finance if any stamp duty exemptions can be made in relation to the purchase of an existing used house by a couple, one of whom was previously a house owner in a previous relationship, and the second person being a first time buyer. [11097/01]

Minister for Finance (Mr. McCreevy)

As the Deputy is aware, in the Finance (No. 2) Act, 2000, I introduced a three tiered stamp duty structure for first time buyers, owner-occupiers other than first time buyers and investors of second hand houses. I increased the exemption from stamp duty from £60,000 to £150,000 in the case of first time buyers and for other owner-occupiers to £100,000. Rates of duty for first time buyers at values up to £300,000 are 25% less than for other owner-occupiers. In particular, the revised regime is structured to facilitate those who are trying to buy their first home and who are faced with par ticular difficulties in the market at the present time.

The stamp duty rates now applying for first time buyers and other owner-occupiers compared to the previous rates applying prior to the Finance (No. 2) Act, 2000, are as follows:

Rates applying prior to Finance (No. 2) Act, 2000£	Rate%	Current RatesFirst Time Buyers£	Rate%	Current RatesOther Owner-Occupiers£	Rate%
0 to 60,000	0	0 to 150,000	0	0 to 100,000	0
60,001 to 100,000	3	150,001 to 200,000	3	100,001 to 150,000	3
100,001 to 170,000	4	200,001 to 250,000	3.75	150,001 to 200,000	4
170,001 to 250,000	5	250,001 to 300,000	4.5	200,001 to 250,000	5
250,001 to 500,000	7	300,001 to 500,000	7.5	250,001 to 300,000	6
Over 500,000	9	Over 500,000	9	300,001 to 500,000	7.5
				Over 500,000	9

The purpose behind the first time buyer relief for the purchase of a second-hand house is to help individuals make the first entry into an already difficult housing market. In general, where a person has previously been able to purchase a house, either jointly or individually, he or she is not entitled to this relief. Similarly, where such a person purchases a house jointly with a first time buyer, the relief, generally, cannot be claimed as the house is not being bought entirely by first-time buyers.

However, the Finance (No. 2) Act, 2000, contains a provision whereby an individual whose marriage is the subject of a decree of divorce or a decree of judicial separation and who buys a new house to live in, will be entitled to claim the stamp duty first time purchaser relief on the first such occasion provided that, at the time of the purchase, he or she does not retain an interest in the former marital home and that, at the time of the new purchase, the other spouse still occupies the former marital home which was occupied by both of them prior to the dissolution. The Finance Act, 2001, extended this provision to circumstances where there is a decree of nullity or a deed of separation. I have no plans, at present, to make any further changes to the stamp duty rates applying on purchases of residential property.