Ivor Callely (Dublin North Central, Fianna Fail)
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Question 272: To ask the Minister for Finance if he intends to make provisions for a first time buyer and a non-first time buyer who are joining together to buy a house for €300,000 in view of the fact that as the total price is less than €317,500 no relief is available to the first time buyer; and if he will make a statement on the matter. [24655/06]

Ivor Callely (Dublin North Central, Fianna Fail)
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Question 273: To ask the Minister for Finance if he intends to make provisions for the situation of two first time buyers buying a house for €320,000 as even though both of them are paying only €160,000 for their share of the house they are not exempt from stamp duty; and if he will make a statement on the matter. [24656/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 272 and 273 together.

Reduced rates of stamp duty on second-hand residential property for first-time buyers were introduced in the Finance Act (No. 2) 2000 in order to assist first-time buyers entering the housing market. The reduced rates apply where the purchaser or purchasers declare that they have not purchased property before and where they will occupy the property for at least five years. Where a property is purchased jointly each purchaser must satisfy the conditions in order to qualify for the reduced rates applicable to first-time buyers.

As regards the situation where two first-time buyers purchase a house valued at €320,000, the position is that the value of the property exceeds the €317,500 exemption limit for first-time buyers and therefore stamp duty is charged on the conveyance at 3%. The stamp duty thresholds applicable to first-time buyers apply on the basis of the full market value of the entire property and not the value of the interest in the property acquired by each first-time buyer.

Any proposals concerning the rates, structure and impact of stamp duty are a matter for the Budget and will be considered in this context. It should be mentioned, however, that I have acted already in a number of respects, to lessen the burden of stamp duty on first-time buyers. As the Deputy may be aware, new houses, which are purchased for occupation as a principal place of residence, are generally exempt from stamp duty already.