Michael Healy-Rae
Ceist:167. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding stamp duty; and if he will make a statement on the matter. [32153/22]
Amharc ar fhreagraTuesday, 21 June 2022
Ceisteanna (167)
Freagraí scríofa
Stamp duty is chargeable on the transfer of residential property such as apartments and houses at the rate of 1% where the consideration or market value does not exceed €1 million. Where the consideration or market value exceeds €1 million, stamp duty is chargeable at 1% on the first €1 million and 2% on the balance. Stamp duty is chargeable on the transfer of non-residential property (including agricultural land) at the rate of 7.5%.
I am advised by Revenue that there is no stamp duty chargeable on the inheritance of any property, regardless of who the beneficiary is. However, where a person transfers property to a child, for example by way of a gift, stamp duty will be chargeable on the market value of the property transferred. There are no stamp duty exemptions or reliefs in relation to transfers of residential property from a parent to a child. However, consanguinity relief may be available in relation to transfers of agricultural land.
Consanguinity relief provides for a 1% rate of stamp duty to be applied where a transfer of agricultural land (by sale, purchase, exchange, or gift) is made between certain related persons, provided certain conditions are met. In the absence of the relief, the non-residential rate of 7.5% would apply. The relevant relationships for the purposes of this relief are:
- Lineal descendent (child, step-child, grandchild etc.);
- Parent, step-parent and grandparent;
- Husband, wife and civil partners;
- Brother, sister, step-brother and step-sister;
- Aunt and uncle; and
- Nephew and niece.
Section 61 of the Adoption Act 2010 provides that, for the purposes of stamp duty chargeable on a conveyance or transfer of land, an adopted person will be regarded as the child of the adopter or adopters.
Furthermore, section 1 of the Stamp Duties Consolidation Act 1999 extends the definition of child to individuals who have been in long-term fostering arrangements. Specifically, it provides that a "child" includes a person who resided with, was under the care of, and was maintained at the expense of the transferor (or lessor) for a period of 5 years before reaching the age of 18.
Accordingly, adopted children and certain fostered children may qualify for consanguinity relief, in the same way as biological children do.
Further information in relation to consanguinity relief is available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/schedules/schedule1-to-SDCA-1999.pdf.
Prior to Finance Act 2011, consanguinity relief was also available in relation to the sale or gift of residential property to related persons. However, I am advised by Revenue that consanguinity relief in respect of agricultural land is now the only tax relief that is available in the case of property transfers between related persons and, as set out above, biological children, adopted children and certain fostered children may all benefit from this relief.
In the event that the information contained in this reply is felt to not adequately clarify the position, you, or the taxpayer concerned, may wish to contact Revenue directly for further assistance.