Denis Naughten (Roscommon-South Leitrim, Independent)
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Question 260: To ask the Minister for Finance if a person (details supplied) is liable for stamp duty;; and if he will make a statement on the matter. [25609/12]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the Revenue Commissioners that if the transfer of ownership of the property referred to in the question is pursuant to a divorce settlement, no Stamp Duty would apply under the provisions of Section 97 Stamp Duties Consolidation Act 1999. However, if the transfer is not pursuant to a divorce settlement, Stamp Duty is chargeable under Section 41 Stamp Duties Consolidation Act 1999.

In this regard I am advised that the normal practice of the Revenue Commissioners in such cases is to charge duty on the greater of:

(1) the equity of redemption of the share passing (i.e. the market value less the value of the outstanding mortgage divided by two (for example, where a 50% share is passing) or

(2) the value of the mortgage debt being assumed, plus any cash consideration.

In practice, where a dwelling house is in negative equity, the Revenue Commissioners will limit the charge to the value of the interest passing.