Richard Bruton (Dublin North Central, Fine Gael)
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Question 308: To ask the Minister for Finance his views on introducing a threshold in respect of the new tax on imputed distribution of moneys from approved retirement funds in order to prevent an adverse impact on persons with low income; and if he will make a statement on the matter. [35746/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would make the following comments in relation to the tax on approved retirement funds, ARF. The 2006 Budget and Finance Act introduced an imputed or notional distribution of 3% of the value of the assets of an ARF on 31 December each year, which notional amount will be taxed at the ARF owner's marginal income tax rate. The change is being phased in over a 3 year period commencing next year. This measure was introduced because the internal review of tax relief for pensions provision undertaken by my Department and the Revenue Commissioners last year, and which was published earlier this year, found that the ARF option was largely not being used, as intended, to fund an income stream in retirement but instead was being used to build up substantial funds in a tax-free environment over the long term. The imputed distribution measure will encourage the use of ARFs as intended, as funds actually drawn down by ARF owners will be credited against the imputed distribution to arrive at a net imputed amount, if any. It is important to note that ARF owners on lower incomes and who qualify for the higher income tax exemption limits for those aged 65 or over may not be affected at all by the measure.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 309: To ask the Minister for Finance the number of residential properties sold second hand in each of the past five years; the number in respect of which stamp duty was paid; the number which were deemed to be stamp duty exempt. [35747/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the number of second hand residential properties sold each year is not determinable from stamp duty records as this data is not collected in such a manner that would allow a breakdown between second-hand and new residential property types. The available information is in respect of the number of residential property transactions, both second-hand and new, where stamp duty was paid in the years 2003, 2004 and 2005 and is as follows:

As the majority of new houses purchased are exempt from stamp duty — only new properties in excess of 125 square metres for owner-occupiers or new properties purchased as investments are liable to stamp duty — it could be reasonably assumed that the bulk of stamp duty paid in respect of residential property is from second-hand properties. The figures do not, however, include second-hand residential property valued at less than €317,500 for first-time purchasers and occupiers and valued at less than €127,000 for other owner-occupiers which are exempt from stamp duty. Particulars of transactions where no stamp duty applies are not normally captured and, accordingly, it is not possible to provide reliable information in relation to exempt categories.