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Dáil Éireann Debate, Wednesday - 16 June 2021

Wednesday, 16 June 2021

Ceisteanna (82)

Sorca Clarke

Ceist:

82. Deputy Sorca Clarke asked the Minister for Finance the number of forward purchase agreements that had been made prior to the passing of the financial resolution on 19 May 2021 providing for a 10% stamp duty measure on the bulk purchase of homes such that the residential units under such agreements will not be subject to the measure when they are completed; the number of such units; and the number of such forward purchase agreements that have been made since the passage of the financial resolution; and if he will make a statement on the matter. [32503/21]

Amharc ar fhreagra

Freagraí scríofa

The Financial Resolution passed by the Dáil on 19 May last provides for a new higher stamp duty rate of 10% where at least 10 residential units (excluding apartments) are acquired by an individual or a corporate entity such as a company in any 12-month period. This new measure is ‘triggered’ when a residential unit is acquired on or after 20 May 2021, with the ‘look-back’ 12-month period commencing at this time on a rolling basis. The units acquired during that period are aggregated. When the 10th unit is acquired, it is chargeable at the 10% rate and this rate also then applies to the other 9 units and to any other units acquired at the same time as the 10th unit. However, while any units acquired before 20 May 2021 are taken into account in establishing whether the threshold of 10 units has been reached, the 10% rate of stamp duty is not applied to these units but only to those units acquired on or after this date.

The Deputy will be aware that multiple purchases by Local Authorities, approved housing bodies, and the Housing Agency are outside the scope of this higher stamp duty. In this regard, you should also note that when putting this Financial Resolution on a permanent statutory footing, I propose providing an exemption from the 10% rate for the provision of the mortgage to rent scheme by private sector participants.

Finally, I am advised that the information sought by the Deputy in connection with forward purchase agreements is not collected by any Government Department. However, I will explore with the Minister for Housing, Local Government & Heritage and Revenue whether it is possible to put in place a reporting regime for agreements of this nature.

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