Joan Burton (Dublin West, Labour)
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Question 129: To ask the Minister for Finance if his attention has been drawn to the fact that persons who completed the purchase of a house in the days and weeks running up to the announcement of Budget 2011 may have been exposed to significant stamp duty bills; if he plans to back-date the change to stamp duty by a reasonable period of time to provide these home owners with some relief; and if he will make a statement on the matter. [47196/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Stamp Duty reforms as announced in the Budget have two aims: stimulation of the property market and commencing the necessary infrastructure for the commitment in the National Recovery Plan to introduce a Site Value Tax. As a result of the changes, Stamp Duty at a rate of 1% where the property value is under €1m and 2% on the excess above €1m, will now be payable on all residential property transactions. I have, however, put in place a transitional arrangement: where a binding contract has been entered into before 8 December 2010, and the effect of this measure would increase the Stamp Duty otherwise chargeable, there will be a transition period whereby Stamp Duty can be calculated and charged under the old regime, so long as the instrument effecting the transfer of the property is executed before 1 July 2011.

I am aware that there will always be winners and losers in a situation such as this, but unfortunately this will happen no matter what date is chosen to commence any new measure and this is regrettable. While there may be additional Stamp Duty costs for some purchasers, the overall transaction costs for property transfers are now much lower than in recent years because of the decline in property values.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 130: To ask the Minister for Finance if he performed an evaluation of the specific implications for the upper Shannon tax designated area of the restriction of section 23 relief to the income from the property itself; and if he will make a statement on the matter. [47219/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Department of Finance, the Office of the Revenue Commissioners and independent consultants carried out major detailed reviews of certain tax incentive schemes in 2005. A key recommendation of these reviews was that a cost benefit analysis should be carried out on any proposed future scheme prior to their introduction. A tax incentive scheme for the mid-Shannon region was subsequently proposed and my Department in line with the new policy engaged Goodbody Economic Consultants to carry out an assessment of the costs and benefits of the proposed scheme. The report was completed in March 2006. The aim of this scheme is to encourage the provision of tourist infrastructure in the mid-Shannon region. If tourists need accommodation there are already plenty of hotels and B&Bs in the area – however at present tourists do not stay in the area in the large numbers we would want. What is needed are tourist related facilities that will encourage people to stay in the area and experience what the mid-Shannon region has to offer. This scheme aims to promote the provision of such facilities. It is not anticipated that the restriction of Section 23 relief will impact significantly on the Mid-Shannon Scheme.

Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 131: To ask the Minister for Finance if he will consider the issues regarding section 23 properties raised in correspondence (details supplied); and if he will make a statement on the matter. [47223/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My Department together with the Revenue Commissioners has been engaged in detailed discussions with the Office of the Attorney General in relation to the many complex issues associated with the legacy property relief schemes which continue to cost the Exchequer several hundreds of millions of Euro a year in tax forgone. The measures announced in the Budget are intended to be proportionate but also effective in terms of reducing the burden on the Exchequer. An impact assessment will be carried out in advance of the 2014 deadline to identify any significant effects of the proposed changes with the aim of providing for such effects in a future Budget in advance of the 2014 guillotine. I realise that these measures may be severe on some people but the economic situation requires that I explore as many avenues as possible to achieve Exchequer savings.