Brian Cowen (Laois-Offaly, Fianna Fail)

For example, a couple buying a new home for the national average house price of almost €370,000 will pay just over €5,000 less than at present. The effective tax rate falls at all levels — the duty paid on a €350,000 home will fall from 6% under the current stamp duty regime to about 4.5% under the new system and the duty on a €500,000 house will be reduced from 7.5% to approximately 5.25%. No transaction under €1 million will be charged much more than approximately 6% duty. This measure will take immediate effect and it will cover instruments that are due to be presented to the Revenue Commissioners no later than 5 December.

The exemptions that apply in the current system — for example, for first-time buyers and buyers of new homes — will be retained. In addition, the current five-year rule, which requires a full claw-back of the stamp duty exemption where the owner-occupier moves out and lets the property, will be reduced to two years. This will allow for the retention of an important control in the system, will better reflect the increased career and residential mobility of our population and will give potential young house buyers greater flexibility and certainty in their choices.

These progressive reforms will lead to a simplification of the system that will increase the efficiency of the housing market, boost confidence and support employment and overall economic activity. They are the right reforms, introduced for the right reasons at the right time.

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