Dáil Éireann Debate, Tuesday - 22 September 2020
242. Deputy Ged Nash asked the Minister for Finance the estimated additional revenue that would be raised by increasing the 2% stamp duty charged on residential property deals worth more than €1 million to 17% in line with the rate in the UK; his views on the appraisal by the Tax Strategy Group that the current rate is low; the action he plans to take in Budget 2021 to address the matter; and if he will make a statement on the matter. [25121/20]
Amharc ar fhreagraI am advised by Revenue that a Ready Reckoner is available on its website at link: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf which provides a wide range of detailed information, including on page 18, changes to the Stamp Duty rate on residential property. While the Ready Reckoner does not show the specific costing you have requested, this can be estimated on a pro-rata or straight line basis from the data provided.
The estimates set out in the Ready Reckoner are based on the assumption of no change in behaviour by taxpayers following a rate change. However, an increase such as that you have proposed could result in significant behavioural change and the estimated yield is less likely to be achieved.
The TSG is not a decision-making body and the papers produced are simply a list of options and issues to be considered in the Budgetary process. Papers on various options for tax policy changes are prepared annually by officials for consideration be the Group.. The 2020 meeting of the Group took place on the 10th of this month, and the papers were published on the 14th https://www.gov.ie/en/publication/fdd38-budget-2021-tsg-papers/).
The 2020 TSG paper on stamp duty notes the anticipated increase in Stamp Duty Land Tax (SDLT) in the UK, which has yet to come into effect, " In the UK a maximum (stamp duty) rate of up to 17% will soon apply (delayed due to Covid-19) in the case of the purchase(r) meeting certain criteria (top rate of 12% on value over £1.5 million plus a 3% surcharge on second homes, plus a 2% surcharge on non-UK residents with effect from April 2021)."
There were a series of changes introduced to SDLT in the UK this year, and my Department will continue to monitor any impact these changes have on the property market there.
Finally, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
