Olivia Mitchell (Dublin South, Fine Gael)
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Question 365: To ask the Minister for Finance the reason psychiatric hospitals and geriatric-psychiatric hospitals do not qualify for tax incentives in the same way as mainstream nursing homes. [1230/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In the budget and Finance Act 1998 the Government introduced a system of capital allowances specifically for nursing homes that are registered with a health board. The purpose of this targeted measure was to encourage investment in increased nursing home capacity and in improved facilities for the elderly and incapacitated for which there continues to be a demand. When the scheme of capital allowances for the construction of private hospitals was introduced in 2001, the question of including psychiatric hospitals and geriatric-psychiatric hospitals within the ambit of this scheme did not arise.

In recent months I have received proposals with regard to the provision of capital allowances for psychiatric hospitals. These proposals are being examined in my Department.

Seán Haughey (Dublin North Central, Fianna Fail)
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Question 366: To ask the Minister for Finance if a first-time buyer of a second-hand house purchased in November 2004 is entitled to relief from stamp duty or a refund of any kind; and if he will make a statement on the matter. [1282/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy will be aware, the 2005 budget introduced a stamp duty relieving measure for first-time house purchasers who are owner-occupiers of second-hand houses by increasing the stamp duty exemption threshold for such purchasers from €190,500 to €317,500 and by having reduced rates for house values up to €635,000.

Where a contract has been entered into prior to 2 December 2004 the new rates will apply provided the instrument, for example, deed of conveyance or transfer or lease, giving effect to the contract is executed on or after 2 December 2004. If someone is unsure as to whether the instrument relating to the property was executed before this date, I would advise them to contact their solicitor for confirmation. If someone is a first-time buyer who is an owner-occupier and the instrument giving effect to the contract was executed before the date outlined above, the stamp duty rates in force before 2 December 2004 would apply and there would be no entitlement to a refund of stamp duty already paid in such a case.

When relieving changes to the stamp duty code are introduced, they take effect from a date specified at the time of the introduction of the measure and are not applied retrospectively. As the Deputy will no doubt appreciate, if one were to backdate the budget change to conveyances executed, say, one week before budget day, there would be strong claims of discriminatory treatment from those who incurred the stamp duty liability, say, two weeks earlier.