Peadar Tóibín (Meath West, Sinn Fein)
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Question 146: To ask the Minister for Finance his assessment of the jobs created by the changes to commercial stamp duty and capital gains tax as outlined in the Finance Bill. [10661/12]

Peadar Tóibín (Meath West, Sinn Fein)
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Question 147: To ask the Minister for Finance the anticipated cost to the Exchequer of the changes to commercial stamp duty and capital gains tax as outlined in the Finance Bill 2012. [10662/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 146 and 147 together.

As I announced in the Budget, a single Stamp Duty rate of 2 per cent will apply to non-residential property transactions executed on or after Budget night 6 December 2011. I also announced a Capital Gains Tax (CGT) incentive for property purchased between 7 December 2011 and end 2013. Where such property is held for seven years, the gain attributable to that seven year holding period will be relieved from CGT.

The measures will facilitate greater activity within the property market, leading to additional employment and activity in related sectors. They have been in place for less than three months so it is not possible to estimate how many jobs have resulted.

A significant proportion of the Stamp Duty yield received since 6 December from commercial property transactions is likely to relate to transactions which predate the Budget change. It is too early at this stage to determine what impact the change will have on the level of activity or on the cost to the Exchequer. It has been estimated that the Stamp Duty measure may cost in the region of €64 million per annum, but it is possible that the new rate will encourage transactions which might not otherwise have taken place.

It is not possible to project the extent of CGT relief under the incentive scheme, because the number of cases in which relief can be claimed is dependent on the number of properties purchased within the incentive period. The relief will vary in every case depending both on the value of the property on its disposal and the date of that disposal. No Exchequer cost will arise in respect of properties sold during the next seven years, because no relief can apply until a property is held for at least seven years. As with the Stamp Duty measure, the incentive may lead to property acquisitions and disposals which might not otherwise have taken place. The measures may also lead to additional taxes from other sources such as VAT and income tax from related employments, trades and professions.