Gay Mitchell
Ceist:129 Mr. G. Mitchell asked the Minister for Finance if a person (details supplied) in Dublin 12 is exempt from stamp duty on the purchase of a house in view of the circumstances. [15930/04]
Amharc ar fhreagraWednesday, 26 May 2004
Ceisteanna (116)
Freagraí scríofa
I am informed by the Revenue Commissioners that, in the absence of sufficient information, it is not possible to state whether the person in question is entitled to an exemption from stamp duty.
However, certain exemptions apply to the purchase of a house depending on the nature of the property and the status of the purchaser. A new house with a floor area certificate or a floor area compliance certificate is exempt from stamp duty for owner occupiers. If there is no floor area certificate or floor area compliance certificate, owner occupiers of new houses are chargeable to stamp duty on the site value or one quarter of the total value of the property whichever is the greater. Accordingly, there is an exemption from stamp duty where that amount, that is, the greater of the site value or one quarter of the total value of the property, is less than €190,500 in the case of a first time purchaser and less than €127,000 in the case of other owner occupiers. Arising out of a change made by the Finance Act 2004, for this latter relief to apply the total floor area of the new house now has to exceed 125 square metres.
With regard to first time owner occupiers of second-hand residential properties, there is no stamp duty payable if the consideration does not exceed €190,500 and reduced rates apply between €190,500 and €381,000. A purchase of a second-hand dwelling by a non-first time purchaser where the consideration does not exceed €127,000 is also exempt.
I should explain that stamp duty legislation has no specific provisions relating to separation agreements whereby the family home is sold and new homes are purchased. However, under section 92B of the Stamp Duties Consolidation Act 1999, as amended, a person whose marriage has been dissolved, is the subject of a judicial separation or a decree of nullity may be treated as a first time purchaser once and only once where that person buys another house to live in provided that the person no longer has an interest in the former marital home and that at the time of the new purchase, the other spouse occupies that former marital home, which was occupied by both of them prior to the dissolution or judicial separation or decree of nullity. This legislation became effective from 15 June 2000.