Paul Kehoe
Ceist:21 Mr. Kehoe asked the Minister for Finance if he has satisfied himself with the equity of the stamp duty code. [24623/04]
Amharc ar fhreagraThursday, 14 October 2004
Ceisteanna (22)
Freagraí scríofa
Stamp duty is a tax on property and property rights. As ownership of property is positively correlated with income, the incidence of this tax will tend to fall more on those on higher incomes. The equity of this depends on one's viewpoint but such a tax is generally regarded as progressive from the point of view of equity.
As for equity between different classes of purchasers of property, the following points are of relevance. Stamp duty does not arise in the case of transfers on death or in the case of transfers between spouses. Half the normal rate applies in the case of transfers between other close relatives. No stamp duty applies in the vast majority of purchases of new houses by first time buyers or other owner occupiers, whereas investors pay the normal rates on the purchase of new houses. In the case of the purchase of a second-hand house by a first time buyer, stamp duty only applies if the value exceeds €190,500. It is always difficult to achieve complete equity in taxation but this issue is borne in mind where relevant in the case of stamp duty.