Dáil Éireann Debate, Wednesday - 10 February 2010
139 Deputy Bobby Aylward asked the Minister for Finance his plans to abolish or reduce further stamp duty on second-hand property in view of the low activity in the residential property market; and if he will make a statement on the matter. [7070/10]
Amharc ar fhreagraI have not made any changes to Stamp Duty on property in the Finance Bill. The Deputy may be aware that no Stamp Duty is payable by first time purchasers of new or second hand residential property or by owner-occupier purchasers of new residential property under 125 square metres in size. If Stamp Duty on residential property was reduced or abolished, any shortfall in Exchequer receipts would have to be made up by increases in other taxes. Stamp Duty on property will be reviewed in the context of potential changes to the taxation of property, such as the Commission on Taxation's recommendation to introduce a residential property tax and the commitment in the renewed Programme for Government to introduce a site valuation tax on non-agricultural land.
140 Deputy Joan Burton asked the Minister for Finance if, in view of the new regime for mortgage interest relief for non-first time buyers, the seven years limit refers to seven calendar years or to a period of 84 months; if a person bought their first home in June 2003 and traded up in 2008, would their entitlement to mortgage interest relief end in December 2009 or June 2010; and if he will make a statement on the matter. [7071/10]
Amharc ar fhreagraThe seven-year time limit for mortgage interest reliefs refers to seven tax years. A tax year is the period from 1 January to 31 December inclusive. Based on the information provided, there would be an entitlement to mortgage interest relief from 2003, including entitlement on the new mortgage taken out when the person traded up to a new property in 2008. Having received mortgage interest relief for seven tax years from June 2003 to 31 December 2009 at the first-time buyer rate, the person is now entitled to receive mortgage interest relief on the new property at the non-first time buyer rate of 15% per annum, on interest paid up to a maximum of €3,000 for a single person or €6,000 for a married couple.
The entitlement to relief in this instance was due to end in 2014. However, in Budget 2010, I announced that I would be extending mortgage interest relief up to the end of 2017, at the appropriate rate, for those whose entitlement to relief was due to end in 2010 or after. Full details of this measure are set out in the Finance Bill.
