Seán Haughey
Ceist:391 Mr. Haughey asked the Minister for Finance if he will abolish stamp duty for first time buyers; and if he will make a statement on the matter. [15505/02]
Written Answers. - Tax Code.
New residential property up to 125 metres square where a floor area certificate has been issued by the Department of the Environment and Local Government is exempt from stamp duty where it has been purchased by, or on behalf of, persons who will occupy it as their only or principal place of residence. If in such a case the residential property being purchased is greater than 125 metres square, duty is charged on the site value or one quarter of the total value of the property, whichever is the greater.
The table below shows the stamp duty rates applying on the transfer of second-hand residential property after the changes introduced in budget 2002.
|
Price Band |
First timebuyer rate |
Full rate |
|
Up to €127,000 |
Exempt |
Exempt |
|
€127,001 to €190,500 |
Exempt |
3% |
|
€190,501 to €254,000 |
3% |
4% |
|
€254,001 to €317,500 |
3.75% |
5% |
|
€317,501 to €381,000 |
4.5% |
6% |
|
€381,001 to €635,000 |
7.5% |
7.5% |
|
Over €635,000 |
9% |
9% |
As this table shows, first time buyers pay no stamp duty on a second hand house valued up to €190,500, and pay a reduced rate for second hand houses valued up to €381,000.
Though I have no plans at present for further relieving measures, the matter will be kept under review. However, I would have to point out that the complete abolition of stamp duty for first-time buyers would be very costly to the Exchequer.