Ned O'Keeffe (Cork East, Fianna Fail)
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Question 245: To ask the Minister for Finance if there is an exemption on the payment of stamp duty for people suffering from illness where the purchased second hand house has to be adapted to meet their special needs (details supplied). [23747/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp duty is a tax on certain documents, generally legal documents, used in transferring property or in creating rights for the parties concerned. The stamp duty code generally does not provide exemptions based on an individual's particular circumstances and introducing such a provision would represent a significant departure from normal stamp duty rules. However, I have been advised by the Department of Environment, Heritage and Local Government that a scheme of disabled persons grants is operated by local authorities with capital provision from that Department. These grants are designed to meet the needs of persons who are either physically handicapped or are suffering from severe mental handicap or severe mental illness. Where a new dwelling is being bought or built a maximum grant of €12,700 is payable. In the case of adaptation of an existing dwelling, 90% of the approved cost of the works is available up to an effective maximum grant of €20,320. Full details of the scheme and the conditions applicable are available from the local authority in whose area the dwelling is situated.

I would 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 complies with certain conditions in relation to building standards. If the property is over 125 square metres, stamp duty is charged on the site value or one quarter of the total value of the property (whichever is the greater).

Stamp duty is a significant contributor to the Exchequer and stamp duty receipts allow for a broader tax base than would otherwise be possible. These receipts form an important element of State revenues which permits Government spending on services such as health and education.