Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Schedule 1 to the Stamp Duties Consolidation Act 1999 provides for a charge to stamp duty on leases. The rate of stamp duty payable depends on the period of the lease. A term not exceeding 35 years or of indefinite duration is charged at 1% of the average annual rent; a term exceeding 35 years but not exceeding 100 years is charged at 2% of the average annual rent; and the term exceeding 100 years is charged at 12% of the average annual rent. Schedule 1 provides for an exemption from this charge for leases of houses and apartments for any term not exceeding 35 years or for any indefinite term where the annual rent is less than €40,000. In the absence of this provision such leases would be charged with the stamp duty at the rate of 1% on the average annual rent. The current €40,000 limit was put in place by Finance Act 2017 having previously been €30,000. In 2017 a figure of €40,000 may have resulted in only a small number of residential leases being subject to stamp duty. However, the increase in rents over the intervening period means that an increasing number of such leases could now potentially exceed the cap. To take account of this, the amendment will increase the limit to €50,000. The amendment will ensure that only high-value leases in respect of houses and apartments are liable to stamp duty.