Vol. 571 No. 1
356 Mr. Carey asked the Minister for Finance if he will review the provision introduced in recent legislation governing the payment of stamp duty on credit cards (details supplied); and if he will make a statement on the matter. [19982/03]
As the Deputy is aware, the stamp duty on credit cards under previous legislation was in respect of an account maintained by the bank on 1 April, which would have allowed cardholders to cancel their cards in a particular manner so as to avoid this annual charge. In view of this, an anti-avoidance provision was included in the Finance Act 2003 to ensure the stamp duty charge will arise where the credit card account is maintained by the bank at any time during the 12 month period ending on 1 April rather than only maintained specifically on 1 April. This change is effective where the charge arises after 1 April 2003.
357 Mr. R. Bruton asked the Minister for Finance the estimated number of second-hand houses that are sold each year on which the stamp duty is levied; his assessment of the proportion of these which are purchased by first-time buyers; the estimated cost of granting relief from stamp duty to first time buyers of second-hand houses; and if he will make a statement on the desirability of relieving first-time buyers of this burden. [19985/03]
I am informed by the Revenue Commissioners that data is not collected in a manner that enables the provision of precise details relating to the stamp duty yield associated with the sale of second-hand homes, including those to first-time buyers. The Revenue Commissioners have, however, advised that the yield from stamp duty in 2002 on all house purchases by first-time buyers was €29 million approximately. As purchases of new houses certified by the Department of the Environment, Heritage and Local Government as having a floor area of less than 125 metres square are exempt from stamp duty, it is reasonable to assume that by far the major portion of this yield from all house purchases by first-time buyers arises from the purchase of second hand homes and that this would have been the cost of such exemption in 2002. A current cost figure is not available.
I am not in favour of giving a total exemption from stamp duty on second-hand houses to first time buyers for both Exchequer cost reasons and because there is no guarantee that the tax revenue thus foregone would accrue to the purchasers. However, I should point out that first-time buyers can avail of a significantly reduced rate of stamp duty in a number of the price bands associated with the purchase of second-hand residential property compared with other owner-occupiers, and also compared to investors who pay stamp duty at the full rate on any residential property purchased, whether new or second-hand.
