Brian Cowen (Laois-Offaly, Fianna Fail)

The housing market is an important aspect of our overall economy and the sustainability of economic activity can be assisted or impeded by the efficiency of that market. What I am not prepared to do is to introduce a set of small changes that would make the system more complex, but would do little to improve the functioning of the market. I decided that if this Government were to act, it would introduce something that would represent a step change in the operation of the tax system on residential property transactions. For that reason, I am today announcing fundamental changes to the current system of stamp duty for residential housing.

New Stamp Duty Regime

Purchases of residences with a value of less than €1 million will be charged to stamp duty on the basis that no tax will be payable on the first €125,000 of the consideration, and the balance will be charged at 7%. Only those houses valued in excess of €1 million will pay at a higher rate of 9% on the portion of the price which is in excess of that figure. There will be no losers and no anomalies will be created by this banding system.

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