Richard Bruton (Dublin North Central, Fine Gael)
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Question 174: To ask the Tánaiste and Minister for Finance the way the rates of stamp duty applying here and in Northern Ireland compare in respect of different taxable transactions including on stock and shares, on investor purchases of land, commercial and residential property, on financial instruments and on residential sales by owner occupiers. [25304/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I would draw to your attention that the stamp duty rates applicable in Northern Ireland are those that apply in the UK. In this respect, I will compare the stamp duty regimes of Ireland and the UK. I would point out, however, that I cannot possess comprehensive knowledge of the tax codes of other jurisdictions.

As stamp duty has been in existence since the 17th Century, the same stamp duty regime would have originally applied to both Ireland and the UK. However, under existing arrangements there are some differences between the two regimes. Both countries apply stamp duty on property and shares; however, in the UK stamp duty on property (stamp duty land tax) is applied to a transaction and not the stamped document giving rise to a transaction, which is still the case in Ireland. The various stamp duties currently applicable in Ireland and the UK are as follows:

Ireland applies a 1% rate of stamp duty on share transactions. In the UK the rate of stamp duty on shares (stamp duty reserve tax) is 0.5%.

Ireland applies fixed stamp duties on ATM cards, debit cards, cards with combined ATM and debit functions, credit card accounts and cheques; the rates of which are outlined as follows. There is no UK equivalent to these stamp duties.

In Ireland stamp duty liability on property can vary according to the category of purchaser, where different systems apply to first-time buyers, other owner occupying purchasers, and investors. This is not the case in the UK, where the same rates and thresholds apply to both investors and owner-occupiers.

In addition, both Ireland and the UK make a number of distinctions within the overall category of property. In Ireland, stamp duty application differs between residential and non-residential property, and between new and second-hand residential property. In the UK, a more favourable lower threshold is applied to residential property in set disadvantaged areas (including set areas in Northern Ireland) and to non-residential property.

As the Irish stamp duty code provides relief for more circumstances than the UK code, the Irish regime is more complex than that in the UK. Taking these distinctions into account, the stamp duty land tax and stamp duty applicable to property in the UK and Ireland, respectively, is as follows:

In relation to the differences in stamp duty on residential property in both countries, it should be noted that Ireland, unlike the UK, does not impose additional taxation on property. In addition, the Irish system applies a much more generous system to first-time buyers and owner-occupiers of new property. Furthermore, the OECD has reported that Ireland "has some of the most generous tax provisions for owner-occupied housing" as we are the only country to allow tax relief on rent, mortgage interest payments and capital gains while not applying a property tax. In this respect, property owners in general are treated very favourably under the Irish tax code.

Leo Varadkar (Dublin West, Fine Gael)
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Question 175: To ask the Tánaiste and Minister for Finance the number of self-employed and proprietary directors who are eligible for income tax; the estimated cost of extending the PAYE allowance to these people. [25344/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the number of income earners who are self-employed or proprietary directors and expected to be on the income tax record in 2008 is projected at 239,000 and 110,900 respectively. The number given for the self-employed relates to income earners whose main source of income is from non-PAYE sources.

The cost to the Exchequer of extending the PAYE credit to the self employed and proprietary directors and is estimated at €610 million in a full year. The cost of abolishing the PAYE credit and increasing the personal credit is estimated at €750 million in a full year. The additional cost would arise because the personal credit is transferable between spouses.

The figures are estimates from the Revenue tax forecasting model using actual data for the year 2004 adjusted as necessary to take account of actual and projected income and employment growth in subsequent years and are rounded to the nearest hundred. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Willie Penrose (Longford-Westmeath, Labour)
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Question 176: To ask the Tánaiste and Minister for Finance if he will extend the TAK saver scheme in Budget 2008 to enable the purchase by employers of bicycles and electrical bicycles for the transportation of their employees to work which would have significant benefits for all concerned; and if he will make a statement on the matter. [25404/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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There are no plans to extend the scheme referred to by the Deputy to include the purchase by employers of bicycles and electrical bicycles for their employees to travel to work.

There is provision in the existing Benefit-in-Kind arrangements to allow an employer to provide an employee with a small benefit to a value not exceeding €250 in any one year without applying PAYE and PRSI to that benefit. The purchase by an employer of a bicycle for an employee could be covered by this provision, subject to the €250 limit on the value of any such benefits.