Written Answers Nos. 92-111
92. Deputy Christopher O'Sullivan asked the Minister for Transport the amount of funding that has been applied for under the NTA active travel programme from the western division of Cork County Council.; and if he will make a statement on the matter. [5923/23]
Amharc ar fhreagra93. Deputy Christopher O'Sullivan asked the Minister for Transport the number of applications that have been submitted by the west Cork municipal district of Cork County Council for funding under the National Transport Authority’s active travel programme; and if he will make a statement on the matter. [5924/23]
Amharc ar fhreagraI propose to take Questions Nos. 92 and 93 together.
As Minister for Transport, I have responsibility for policy and overall funding in relation to Active Travel. Funding is administered through the National Transport Authority (NTA), who, in partnership with local authorities, have responsibility for the selection and development of specific projects in each local authority area.
Noting the role of the NTA in the matter, I have referred your question to that agency for a more detailed answer in relation to specific funding for Active Travel. If you do not receive a reply within 10 working days, please contact my private office.
94. Deputy Duncan Smith asked the Minister for Transport his views on the situation regarding the lack of staff and funding leading to Dublin City Council being unable to have safe school zones outside secondary schools, given the backlog for primary schools; the steps his Department is taking to speed up the process; and if he will make a statement on the matter. [5932/23]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to active travel infrastructure. The NTA along with the relevant local authorities, are responsible for the development and delivery of individual projects.
In March 2021, I launched the Safe Routes to School (SRTS) Programme as a response to the need to improve safety at the ‘front of school’ environment and enhance access to school grounds. The programme aims to support walking, scooting and cycling to primary and post-primary schools and to create safer walking and cycling routes within communities. This will help alleviate congestion at school gates and increase the number of students who walk or cycle to school by providing the necessary infrastructure.
The Programme is funded by my Department through the National Transport Authority (NTA) and is supported by the Department of Education. An Taisce’s Green-Schools is coordinating the programme, while funding will be made available to local authorities who will play a key part in delivering the infrastructure along access routes and at the school gate.
931 applications were received from primary and secondary schools across every county in Ireland. 167 schools form Round 1 of the Programme with a further 108 schools having been selected for inclusion in Round 2. It should be noted that all schools that applied to the original call for applications were accepted into the programme, and if not selected in the first two rounds will be selected at a later stage without the need to reapply.
To assist and expand the Safe Routes to School Programme, approval was given for the recruitment of five new staff with An Taisce, on top of the existing seven, financed through the Active Travel budget. This will enable the timely processing of SRTS projects.
In terms of wider resourcing, you may be aware that in 2021 I provided sanction for almost 250 additional dedicated local authority staff for Active Travel projects. I understand that recruitment has been difficult in some areas due to the overarching problem of labour market shortages and my Department continues to liaise with the NTA to address these issues. I am pleased to note that as of 30 September 2022 over 210 of these additional staff are now in place. This should help to speed up the pace of delivery for Active Travel projects around the country, following significant financial investment by Government in the past four years.
It is also worth noting that the funding available to local authorities for walking and cycling infrastructure has increased significantly in the past four years, with €290 million being allocated to the National Transport Authority to fund local authority active travel projects across the country this year, including Dublin City Council (DCC). Almost €60m has been allocated to DCC this year which will help to improve the safety and comfort of pedestrians and cyclists, including primary and secondary school students, in our capital city through the provision of new and improved walking and cycling infrastructure.
95. Deputy James Lawless asked the Minister for Transport if an issue with a bus service (details supplied) from Clane to Naas will be examined; if this bus service will be reinstated; and if he will make a statement on the matter. [5933/23]
Amharc ar fhreagraAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. The NTA also has national responsibility for integrated local and rural transport, including TFI Local link services, and delivering the Connecting Ireland Rural Mobility Plan. Connecting Ireland is a major national public transport initiative with the aim of increasing public transport connectivity, particularly for people living outside the major cities and towns.
In light of the NTA's responsibilities for bus services in County Kildare, including to/from Sallins, I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.
96. Deputy Niamh Smyth asked the Minister for Transport the reason a person (details supplied) is waiting so long for their driving test; and if he will make a statement on the matter. [6080/23]
Amharc ar fhreagraThe Road Safety Authority (RSA) has statutory responsibility for the operation of the national driving test and deals with all application and scheduling matters. Therefore I have referred the question to the Authority for direct reply. I would ask the Deputy to contact my office if a response is not received within 10 days.
97. Deputy Brendan Griffin asked the Minister for Transport the number of persons that are waiting on NCT appointments in County Kerry. [6164/23]
Amharc ar fhreagraThe operation of the National Car Testing Service is the statutory responsibility of the Road Safety Authority. I have therefore referred the Deputy's query to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
98. Deputy Holly Cairns asked the Minister for Transport to outline his engagement with disabled persons’ organisations concerning legislation regulating e-scooters. [6186/23]
Amharc ar fhreagraThe Programme for Government is committed to legislating for electric scooters. The Road Traffic and Roads Bill 2021, now before the Seanad, includes provisions to allow for the regulation of e-scooters. The Bill defines a new category of vehicle in the Road Traffic Act, 1961, powered personal transporters or PPTs, which will include e-scooters. This will enable me to put regulations in place to govern the safe use of e-scooters. E-scooters which meet the criteria established will become legal to use on the introduction of regulations governing technical requirements and their use on public roads.
A public consultation was carried out in 2019, during the term of the previous Government. Disability representative organisations were specifically invited to make a submission as part of the consultation and any concerns raised were taken into consideration in preparing a usage policy.
Road safety stakeholders were again asked for submissions in February 2021, and disability representative organisations were included in that call for submissions. Concerns were taken on board by my officials when making policy and drafting proposed legislation.
From time to time my department receives correspondence on this issue from disability representative organisations. Any issues raised are considered in the context of development of policy and legislation for the use of e-scooters on public roads.
99. Deputy Holly Cairns asked the Minister for Transport his views on concerns expressed by visually-impaired persons in respect of e-vehicles and e-scooters. [6187/23]
Amharc ar fhreagraThe safety of all road users, and particularly those more vulnerable road users, is at the forefront of my department's work to progress legislation for light electric 'micromobility' vehicles such as e-scooters and e-bikes. I believe that e-scooters have a role to play as a form of emission-free micromobility. At the same time, they have to be legislated for in a way which will ensure the safety of e-scooter riders and of other road users. The Road Traffic and Roads Bill 2021, which has been passed by the Dáil and is currently before the Seanad, addresses e-mobility, amongst a range of other matters.
To this end, a comprehensive public consultation process was undertaken in 2020 to seek the views of a range of stakeholders including accessibility groups and advocates. A second consultation process was undertaken in 2021. Further to public consultation, a number of accessibility groups, including the NCBI, the Irish Wheelchair Association and Irish Guide Dogs for the Blind, have made independent submissions to my department.
The findings of these submissions and of both consultations have informed the development of the Bill and are being considered in the preparation of subsequent regulations. The matters of concern raised by the organisations mentioned are matters which are dealt with in regulations rather than in Acts, for all classes of vehicle. Questions of where e-scooters can be used, the speed limits which should apply to them, or whether they should have audible warning devices are matters which will be addressed in regulations after the necessary enabling powers have been provided by the Bill.
Separately, in respect of electric cars, the Deputy may wish to note that since July 2019, all electric and hybrid vehicles placed on the market in the EU, including Ireland, are required under Commission Delegated Regulation (EU) 2017/1576 to have an acoustic vehicle alerting system (AVAS) fitted that will automatically emit a noise when travelling at speeds below 20km/h and when reversing to alert pedestrians of oncoming vehicles. The device is obligatory in all new EVs since 1 July 2021.
This requirement has been given effect in Irish law by means of the European Union (Road Vehicles: Type-Approval and Market Surveillance) Regulations 2020 (S.I. No. 556 of 2020).
100. Deputy Duncan Smith asked the Minister for Finance his views on the policy of removing the 0% benefit-in-kind rate on electric vehicles; his views on whether this policy will remove an incentive to switch to electric vehicles; and if he will make a statement on the matter. [6158/23]
Amharc ar fhreagraRecent Government policy has focused on strengthening the environmental rationale behind company car taxation. In Finance Act 2019, I legislated for a CO2-based BIK regime for company cars from 1 January 2023. From that date the amount taxable as BIK remains determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands will determine whether a standard, discounted, or surcharged rate is taxable. The number of mileage bands is reduced from five to four.
EVs will benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles will be subject to higher BIK rates, up to 37.5%. In terms of impacts, broadly speaking this means that higher emission vehicles will experience BIK increases versus the 2022 year of assessment, while lower emission vehicles will experience a lower BIK liability depending on mileage levels. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
Reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This will bring the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This means that the quantum of the relief is phased down from €50,000 in 2022, to €35,000 in 2023, €20,000 in 2024, and €10,000 in 2025.
It should also be noted that this BIK relief forms part of a broader series of very generous measures to support the uptake of EVs, including
- Vehicle Registration Tax relief of up to €5,000 for battery electric vehicles (BEVs). From January 2021, this relief is no longer available for BEVs with an Open market Selling Price of >€50,000. This is in addition to a base VRT rate of 7%, reduced from 14% in 2021.
- Home Charger Grant - Up to €600 towards the installation cost of a domestic charge point for new and second-hand BEVs or PHEVs.
- Low Motor Tax - BEVs qualify for the lowest tax band of motor tax at €120 per annum, while a plug-in hybrid vehicle (PHEV) is typically taxed at circa €170 per annum.
- BEV and PHEVs qualify for 50% and 25% toll reductions respectively up to a maximum €500 annual threshold for private vehicles and a maximum annual threshold of €1,000 for commercial vehicles
- A grant of up to €10,000 to support the purchase of a BEV in the taxi/hackney/limousine sector with an additional €2,500 available for those choosing to make their vehicle wheelchair accessible. Those scrapping older, more polluting, or high mileage vehicles are now eligible for double the normal grant if they make the switch to electric with up to €20K available for a new BEV, €25K for a new wheelchair accessible BEV and €15K for a new wheelchair accessible PHEV.
- Alternatively Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme - grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally-fuelled diesel HDV and its alternatively-fuelled equivalent.
In summary, I am satisfied that the Government has provided a broad suite of supports for the uptake of EVs.
101. Deputy Neasa Hourigan asked the Minister for Finance the percentage of social media videos posted on his Department's social media accounts or the social media accounts of public bodies and agencies that operate under the remit of his Department, that included closed captioning or subtitling and Irish sign language translations between 1 January 2022 and 31 December 2022, inclusive. [5569/23]
Amharc ar fhreagraI wish to advise the Deputy that of the social media videos posted by my Department during the timeframe specified, 66% included closed captioning/subtitles and none included Irish sign language translations.
I am advised that of the social media videos posted by the bodies under the aegis of my Department in 2022, none included Irish sign language translations. The position in relation to closed captioning/subtitling by these bodies is set out below.
100% of the videos posted on social media by the Central Bank of Ireland included closed captioning/subtitles. The Central Bank can provide captioned versions of all its videos, as well as downloadable transcripts on centralbank.ie. Most of its videos are text-led, and can be fully consumed without sound. It also produces the majority of its videos in both English and Irish to ensure their content is as inclusive as possible.
100% of the videos posted on social media by the Financial Services and Pensions Ombudsman (FSPO) included closed captioning/subtitles.
100% of the videos posted on the Irish Fiscal Advisory Council on its social media account included closed captioning/subtitles.
86% of the videos posted on social media by the National Treasury Management Agency included closed captioning/subtitles.
100% of the videos posted on social media by the Office of the Comptroller and Auditor General included closed captioning/subtitles. All of its videos are designed with accessibility in mind. For this reason, videos presenting outputs of audit work are displayed as text/graphics and not spoken word recordings. All of its videos are hosted on the Office of the Comptroller and Auditor’s private YouTube channel and therefore closed captioning is available on all videos. In addition, all social media posts include a link to its website where the video content is available.
88% of the videos posted on social media by the Office of the Revenue Commissioners included closed captioning/subtitles.
100% of social media videos posted by the Strategic Banking Corporation of Ireland on its social media account included closed captioning/subtitles.
102. Deputy Louise O'Reilly asked the Minister for Finance his views on the low uptake of the temporary business energy support scheme to date; if analysis has been conducted to ascertain the reason that take-up has been so low; and the estimated number of eligible businesses that are yet to apply. [5596/23]
Amharc ar fhreagraThe Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs over the winter months.
Sections 100 to 102 of Finance Act 2022 make provision for the TBESS. The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 28 February 2023. The TBESS is available to eligible tax compliant businesses carrying on a trade or profession, the profits of which are chargeable to tax under Case I or Case II of Schedule D. Qualifying businesses can claim 40% of the increase in their energy bills between the ‘claim period’, which is a calendar month falling between September 2022 and February 2023 inclusive, and the ‘reference period’, which is the corresponding calendar month in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade or profession. Businesses which are eligible for TBESS can register for the scheme via Revenue’s online service and comprehensive guidelines on the operation of the scheme are available on the Revenue website.
The scheme has, to date, seen a relatively lower level of uptake than would have been initially expected. That being said, it is important to note that the scheme it only opened for claims in early December. In addition, depending on the billing cycles which apply businesses may be waiting for relevant bills for the period or part thereof, to be issued in order that they can make a claim. Revenue has reported increased activity on Revenue’s TBESS claims portal in the past week in addition to a significant increase in the volume of phone calls to their dedicated TBESS helpline. As a result Revenue is allowing businesses additional time to submit their claims for September 2022, which should have been submitted by 31 January 2023.
The latest statistics reported by Revenue note that as of 30 January, over 21,696 businesses have registered for the TBESS and over 13,885 claims have already been approved. These approved claims have a value of €26.9 million and €20.47 million has already been paid into business bank accounts.
I would encourage all eligible businesses to register for and claim under the scheme. The government will make a decision in the coming weeks on the future of the TBESS scheme along with all the other cost of living measures that are due to expire at the end of February.
103. Deputy Carol Nolan asked the Minister for Finance the estimated savings that have accrued to print and digital newspapers following the decision to apply a zero-rate of VAT to same; and if he will make a statement on the matter. [5716/23]
Amharc ar fhreagraThe estimated annual cost to the exchequer of reducing VAT on print and digital newspapers from a 9% VAT rate to a zero VAT rate is €33m. This measure was introduced from 1 January 2023.
There is no obligation for a business to pass on savings to customers arising from a reduced rate of VAT.
104. Deputy Patricia Ryan asked the Minister for Finance if he supports a reduction to 5% in the VAT rate on hairdressing and barbering; and if he will make a statement on the matter. [5773/23]
Amharc ar fhreagra114. Deputy Holly Cairns asked the Minister for Finance his views on the requests by a representative body (details supplied) seeking the retention of the 9% VAT rate for hair and beauty services. [6183/23]
Amharc ar fhreagraI propose to take Questions Nos. 104 and 114 together.
As the Deputies are aware, at present, the 9% rate applies on a temporary basis to the hospitality and tourism sectors and also to hairdressers. From 1 March 2023, these sectors are due to return to the 13.5% rate.
As I have said on a number of occasions, the Government will in the coming weeks examine the full suite of taxation and other measures that are due to expire at the end of February.
In making any decision in relation to these rates the Government will balance the costs of the measures in question against their impact and the overall budgetary framework.
105. Deputy Catherine Murphy asked the Minister for Finance if he has plans to review the degree to which the change in benefit-in-kind is impacting on persons that require the provision of a vehicle as part of their work; if he will set out the rationale for applying the charge on the end user rather than the provider of the vehicle; and if he plans to mitigate increased charges on workers in the context of the cost-of-living crisis. [5791/23]
Amharc ar fhreagraRecent Government policy has focused on strengthening the environmental rationale behind company car taxation. Until the changes brought in as part of the Finance Act 2019, Ireland’s vehicle benefit-in-kind regime was unusual in that there was no overall CO2 rationale in the regime. This is despite a CO2 based vehicle BIK regime being legislated for as far back as 2008 (but never having been commenced).
In Finance Act 2019, a CO2-based BIK regime for company cars was legislated for from 1 January 2023. From the beginning of this year, the amount taxable as BIK is determined by the car’s original market value (OMV) and the annual business kilometres driven, while new CO2 emissions-based bands determines whether a standard, discounted, or surcharged rate is taxable.
In certain instances, this new regime will provide for higher BIK rates, for example in relation to above average emissions and high mileage cars. It should be noted, however, that the rates remain largely the same in the lower to mid mileage ranges for the average lower emission car. Additionally, EVs benefit from a preferential rate of BIK, ranging from 9 – 22.5% depending on mileage. Fossil-fuel vehicles are subject to higher BIK rates, up to 37.5%. This new structure with CO2-based discounts and surcharges is designed to incentivise employers to provide employees with low-emission cars.
I am aware that there have been arguments surrounding the mileage bands in the new BIK structure, as they can be perceived as incentivising higher mileage to avail of lower rates, leading to higher levels of emissions. The rationale behind the mileage bands is that the greater the business mileage, the more the car is a benefit to the company rather than its employee (on average); and the more the car depreciates in value, the less of a benefit it is to the employee (in years 2 and 3) as the asset from which the benefit is derived is depreciating faster. Mileage bands also ensure that cars that are more integral to the conduct of business receive preferential tax treatment.
I believe that better value for money for the taxpayer is achieved by curtailing the number of subsidies available and building an environmental rationale directly into the BIK regime. It was determined in this context that reforming the BIK system to include emissions bands provides for a more sustainable environmental rationale than the continuation of the current system with exemptions for electric vehicles (EVs). This brings the taxation system around company cars into step with other CO2-based motor taxes as well as the long-established CO2-based vehicle BIK regimes in other member states.
In addition to the above and in light of government commitments on climate change, Budget 2022 extended the preferential BIK treatment for EVs to end 2025 with a tapering mechanism on the vehicle value threshold. This means that the quantum of the relief is phased down from €50,000 in 2022, to €35,000 in 2023, €20,000 in 2024, and €10,000 in 2025. This BIK exemption forms part of a broader series of very generous measures to support the uptake of EVs, including a reduced rate of 7% VRT, a VRT relief of up to €5,000, low motor tax of €120 per annum, SEAI grants, discounted tolls fees, and 0% BIK on electric charging.
Finally, it should be noted that this new BIK charging mechanism was legislated for in 2019 and was announced as part of Budget 2020. I am satisfied that this has provided a sufficient lead in time to adapt to this new system before its recent implementation.
106. Deputy Michael Creed asked the Minister for Finance if he can arrange for the Revenue Commissioners to issue confirmation of property tax affairs being in order to a home proprietor (details supplied); and if he will make a statement on the matter. [5823/23]
Amharc ar fhreagraI am advised by Revenue that contact has been made with the individual concerned and the required confirmation has issued, as requested.
Revenue further advise that all property owners can access the Local Property Tax (LPT) online portal at lpt.revenue.ie/lpt-web/, to obtain information regarding their property. To access the online portal, property owners will require their PPSN, Property ID and PIN number. The Property ID and PIN number can be found on any LPT correspondence previously received from Revenue.
107. Deputy Kathleen Funchion asked the Minister for Finance if he spoke with the First Permanent Secretary and Chief Executive of HMRC during his recent visit to London. [5843/23]
Amharc ar fhreagraAs the Deputy will be aware, I travelled to London for a two-day official visit on 25 and 26 January. During my visit, I held productive meetings with the Chancellor of the Exchequer, Jeremy Hunt MP; the Governor of the Bank of England, Andrew Bailey; and the Shadow Chancellor of the Exchequer, Rachel Reeves MP. I also met with the Lord Mayor of the City of London, Nicholas Lyons, and also met with the President of the European Bank for Reconstruction and Development, Odile Renaud-Basso. I did not meet with the First Permanent Secretary and Chief Executive of HMRC.
108. Deputy Kathleen Funchion asked the Minister for Finance the estimated full-year yield if the local property tax rate for houses valued at between €1.487 million and €1.575 million increased to €2,485, between €1.575 million and €1.662 million increased to €2,830, between €1.662 million and €1.750 million increased to €3,100 and over €1.750 million increased to €3,370, based on 2022 figures. [5844/23]
Amharc ar fhreagraI am advised by Revenue that the Local Property Tax (LPT) charge applicable to properties valued under €1.75 million is based on the relevant charge associated with the valuation band returned by the property owner.
For properties valued over €1.750 million, the LPT charge is based on market value and is the sum of:
- 0.1029% of the first €1.05 million of declared market value of the property
- 0.25% of the portion of the declared market value between €1.05 million and €1.75 million
- 0.3% of the portion of the declared market value above €1.75 million.
The change outlined in the question for properties valued over €1.75 million has not been included in this costing as such a change to the regime would mean a significant reduction in the LPT liability for higher value properties.
The estimated yield from the proposed changes to bands 17 to 19 (properties valued between €1.487 million and €1.750 million) is in the region of €1 million in a full year. This is based on returns for the year 2022.
109. Deputy Pearse Doherty asked the Minister for Finance the number of applications made to the Revenue Commissioners for the rent tax credit to date; the number of applications that have been approved; the number that have been rejected; and if he will make a statement on the matter. [5876/23]
Amharc ar fhreagraThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by Finance Act 2022 and is available in respect of qualifying payments made during the 2022 to 2025 years of assessment inclusive.
I am advised by Revenue that up to 03 February 2023, 125,724 claims for the Rent Tax Credit have been made in respect of the 2022 year of assessment. These claims refer to PAYE taxpayers, who submitted an Income Tax return for the 2022 year of assessment through Revenue’s online facility myAccount. Revenue has published statistics on Rent Tax Credit claims which is available on Revenue’s website at: www.revenue.ie/en/corporate/documents/statistics/registrations/paye-returns-rent-credit-2022.pdf
It is anticipated that from mid-February 2023, PAYE taxpayers will be able to claim the Rent Tax Credit due to them in relation to the 2023 year of assessment either, in “real time” via myAccount or if preferred, after the end of the year in their Income Tax return for 2023.
Data on claims by self-assessed taxpayers is not yet available as these taxpayers’ returns are generally submitted later in the year. The statutory filing date for the 2022 tax return for self-assessed taxpayers is 31 October 2023.
As with any tax credit or relief, including the Rent Tax Credit, Revenue has mechanisms in place to verify and ensure the accuracy of claims within the application process.
I am advised by Revenue that in instances where conditions are not met, and therefore there is no entitlement to the credit, the claimant will not be able to proceed with their application. The number of such instances is not known.
Further information on the Rent Tax Credit is available on Revenue’s website at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx.
110. Deputy Eoin Ó Broin asked the Minister for Finance the nature of NAMA's 20% interest in the Poolbeg SDZ development; and if he will describe the nature of the interest, that is, equity, equity with development cost liabilities, or other. [5954/23]
Amharc ar fhreagraI am advised by NAMA that the Agency holds a 20% equity interest in the development site at Poolbeg West SDZ. Under the terms of the shareholder agreement, which NAMA entered in 2021, all shareholders in accordance with an agreed Business Plan can be requested to meet their respective capital commitments prorated to their equity interest. Otherwise, the specific terms of the shareholder agreement, and the value of such commitments, are commercially sensitive.
111. Deputy Emer Higgins asked the Minister for Finance if he has considered the business case for deferring stamp duty liability on properties that have been purchased by individuals, groups or businesses with the sole purpose of improvement in order to encourage investors to fix up older, less energy efficient stock for resale, thereby creating a green flipping business model; and if he will make a statement on the matter. [5983/23]
Amharc ar fhreagraStamp Duty is a tax on certain instruments (written documents), and it is chargeable on instruments that transfer land and buildings situated in Ireland. Such instruments are usually called ‘Deeds of Transfer’ or ‘Deeds of Conveyance’.
Stamp Duty is also chargeable on the following instruments:
- written leases of land and buildings situated in Ireland
- instruments that transfer shares or stocks of Irish companies (Stock Transfer forms)
- instruments that transfer property as a gift
- certain written agreements or contracts to transfer property
- certain written agreements to lease
- instruments that relate to Irish property or something done or to be done in Ireland, regardless of where they are executed.
A range of other stamp duties are also charged, though these do not impact on the acquisition of land or buildings.
The current rate of Stamp Duty on residential property is 1% on first €1 million of consideration and 2% on any excess. The current rate on non-residential property is 7.5% on the full consideration. It is therefore assumed that the Deputy is referring to residential property in this question.
A refund scheme is available where non-residential land is bought and the 7.5% rate of stamp duty paid, and within a stipulated timeframe, and also subject to a number of other conditions, is subsequently developed for residential purposes. This can result in the net stamp duty paid on such property being 2% following a refund.
However, I have no plans at this time to introduce a scheme of the type outlined by the Deputy in her question.
