Written answers

Wednesday, 28 September 2005

9:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 520: To ask the Minister for Finance if his attention has been drawn to the fact that new houses valued at under €317,000 and under 125 square metres in size can lose their exemption from stamp duty when sold to first-time buyers if they do not have a compliance certificate showing they conform to building regulations; the reason such first-time buyers should be so penalised; and if the Department of the Environment, Heritage and Local Government will be informed that it should find a new way of enforcing compliance with building standards other than through the stamp duty code. [25599/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I should point out that there is no stamp duty on the purchase of new residential property for owner-occupiers where the dwelling is not greater than 125 square metres and where it complies with certain conditions in relation to building standards.

The Finance Act 2004 substituted a requirement for a floor area compliance certificate for new houses with a floor area under 125 square metres, for the previously required floor area certificate which certified that the floor area of a house was within the required size for the stamp duty exemption. This size requirement was also a condition for eligibility under the now ceased first-time buyers grant scheme operated by the Department of the Environment, Heritage and Local Government. A further requirement of that scheme was that the house had to comply with required building standards. The purpose of the new floor area compliance certificate issued by the Department of the Environment, Heritage and Local Government is to certify that not only is the floor area of the new house under 125 square metres but also that the house complies or will comply with required building standards. The stamp duty exemption for owner-occupiers of such houses is conditional on the existence of a floor area compliance certificate at the time of transfer thereby ensuring that purchasers of small new houses are fully protected in relation to the building standards of such houses.

Following the 2004 changes, the policy decisions behind these changes were reinforced in the Finance Act 2005 by confirming that new houses under 125 square metres could not otherwise avail of an exemption from stamp duty without having a floor area compliance certificate. This change was made because otherwise the raising of the stamp duty exemption limit for first time buyers to €317,500, in budget 2005, would have had the effect that new houses purchased by first-time buyers within this price range and with a floor area under 125 square metres also became exempt from stamp duty, without having to have a floor area compliance certificate. I do not have plans at present to change this system, because to do so would reduce the level of protection for first-time buyers and other owner-occupiers of new houses.

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 521: To ask the Minister for Finance if a refund of stamp duty will issue to a person (details supplied) in County Sligo; and if he will make a statement on the matter. [25800/05]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that, in the case referred to by the Deputy, a deed dated 28 February 2001 was received by the Dublin Stamp Office on 26 March 2001. The deed or accompanying documentation did not contain any claim for owner-occupier relief. Stamp duty was assessed on the deed as submitted. An application for repayment of stamp duty, dated 13 April 2004, was received from the solicitor acting for the purchaser. The application was responded to on 27 May 2004 seeking the basis on which the application was made. No response was received from the solicitor's office.

A purchaser of second-hand residential property for a consideration of less than €127,000 would have been exempt from stamp duty at that time where certain conditions as to use of the property for five years after the date of the conveyance or transfer were met. The main conditions are that it is used by the purchaser as his-her only or principal place of residence and that no person derives any rent from the dwelling, other than under the rent-a-room scheme.

Comments

No comments

Log in or join to post a public comment.