James Reilly (Dublin North, Fine Gael)
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Question 121: To ask the Tánaiste and Minister for Finance his views on reform of the stamp duty system, exempting from stamp duty any house purchased by a person with a disability due to the appropriateness of that house for their disability; and if he will make a statement on the matter. [17246/07]

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.

The Finance (No. 2) Bill 2007 provides that stamp duty will be abolished on any house purchased by a first-time buyer. A disabled person, who is a first-time buyer, may avail of this exemption. The Deputy will appreciate that 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.