Noel Ahern (Dublin North West, Fianna Fail)
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Question 105: To ask the Minister for Finance the position regarding a first-time buyer of an existing house who signed the contract to purchase on the week of budget 2011 and is thus billed for an additional €4,000; if any provision can be made to grant exemption in this case; if transitional relief applies; and if he will make a statement on the matter. [1980/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy is aware, I announced in Budget 2011 a major reform of the charge to Stamp Duty on residential property transactions, which applies to all instruments executed on or after 8 December 2010. These changes have simplified the system by lowering the rates applicable and abolishing a number of exemptions and reliefs. The changes in rates are as follows: Stamp Duty rates on transfers of residential property up to 7 December 2010

New Stamp Duty rates on transfers of residential property from 8 December 2010

Aggregate Consideration Rate of Duty

In order to broaden the tax base, a number of reliefs and exemptions have been abolished as follows:

- First Time Buyer's Relief;

- Relief from Stamp Duty on new houses under 125 sq metres;

- Reduced Stamp Duty on new houses over 125 sq metres

- Consanguinity relief in respect of residential property transfers;

- Exemption for residential property valued under €127,000; and

- Site to child relief.

Although the First Time Buyer exemption from Stamp Duty was abolished from 8 December 2010, a transitional measure was put in place for cases where the changes would increase the Stamp Duty payable on the transaction. Stamp Duty can be paid under the old rates, if this would result in a lower liability, where a binding contract to purchase a property was in place before 8 December 2010 and the instrument is executed before 1 July 2011. Therefore, if the case to which the Deputy refers satisfies these conditions, First Time Buyer relief may still be claimed.