Denis Naughten
Ceist:260 Deputy Denis Naughten asked the Minister for Finance if a person (details supplied) is liable for stamp duty; and if he will make a statement on the matter. [25609/12]
Amharc ar fhreagraTuesday, 22 May 2012
Ceisteanna (173)
Freagraí scríofa
I have been advised by the Revenue Commissioners that if the transfer of ownership of the property referred to in the question is pursuant to a divorce settlement, no Stamp Duty would apply under the provisions of Section 97 Stamp Duties Consolidation Act 1999. However, if the transfer is not pursuant to a divorce settlement, Stamp Duty is chargeable under Section 41 Stamp Duties Consolidation Act 1999.
In this regard I am advised that the normal practice of the Revenue Commissioners in such cases is to charge duty on the greater of:
(1) the equity of redemption of the share passing (i.e. the market value less the value of the outstanding mortgage divided by two (for example, where a 50% share is passing) or
(2) the value of the mortgage debt being assumed, plus any cash consideration.
In practice, where a dwelling house is in negative equity, the Revenue Commissioners will limit the charge to the value of the interest passing.