Terence Flanagan (Dublin North East, Fine Gael)
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Question 147: To ask the Minister for Finance his views on a matter (details supplied) regarding stamp duty; and if he will make a statement on the matter. [15506/11]

Michael Noonan (Limerick City, Fine Gael)
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The changes to stamp duty rates, reliefs and exemptions, brought into effect by Budget 2011, apply to all instruments executed on or after 8 December 2010. There is also a transitional measure in place, for circumstances where the effect of these changes is to increase the Stamp Duty payable on the transaction. Stamp Duty can be paid under the old regime where a binding contract is in place before 8 December 2010 and the instrument is executed before 1 July 2011.

However, where a house was purchased in September 2010, the rate of stamp duty applied was the rate applicable at that time as set out in the table below:

There is, therefore, no basis for a clawback of stamp duty paid.

I have no plans to change the rate of Stamp Duty for property transfers which took place before the Budget. The overall transaction costs for property transfers were much lower last year than in recent years, even before the Stamp Duty changes.

It is not usual practice for the Minister for Finance to comment on possible taxation measures or the detail of their implementation prior to their introduction in a Budget or Finance Bill.

Terence Flanagan (Dublin North East, Fine Gael)
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Question 148: To ask the Minister for Finance if he will respond to a matter (details supplied) regarding landlords; and if he will make a statement on the matter. [15521/11]

Michael Noonan (Limerick City, Fine Gael)
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As requested by the Deputy's constituent the details of the matter have been passed to the relevant officials.

The previous Government reduced the level at which interest repayments can be claimed against tax for residential rental properties from 100% to 75% in Budget 2009.

The Programme for Government does not contain any specific proposal on the level of tax relief investors can claim on the interest for mortgages and loans on residential rental properties, however all taxation measures and reliefs are kept under review and considered in the context of ongoing budgetary and economic policy.

In relation to Section 23 relief, while Finance Act 2011 contained measures in relation to the legacy property-based tax relief schemes these were subject to a commencement order. In the Programme for Government we committed to reducing, capping or abolishing property tax reliefs and other tax shelters which benefit very high income earners. In line with this the Department of Finance is currently carrying out an economic impact assessment of possible changes to the property-based reliefs including Section 23-type reliefs.

The impact assessment will enable the Department to better understand the benefits that may accrue to the exchequer in terms of additional tax yield as well as the consequences for investor groups and the wider economy arising from possible changes.

The results of the economic impact assessment will be considered in the context of the preparation of Budget 2012.