Michael Healy-Rae (Kerry South, Independent)
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190. To ask the Minister for Finance his views on the retention of stamp duty consanguinity relief for transfers between family members for non-residential transfers. [35937/14]

Michael Noonan (Limerick City, Fine Gael)
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Consanguinity relief applies to transfers of non-residential property to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, adopted child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Stamp Duty is charged at half the normal rate. This relief applies to transfers of non-residential property executed on or before 31 December 2014 and does not apply to leases or transfers of shares.

Consanguinity Relief from Stamp Duty is being phased out in context of the reduction in the rate of Stamp Duty on non-residential property (including agricultural property) from 6% to 2%. Even after the relief is phased out, individuals purchasing property from a relative will be paying Stamp Duty at a lower rate than they would have paid when claiming consanguinity relief prior to the Stamp Duty reduction in Budget 2012 (from 1 January 2015 they will pay 2%; up to December 2011 they would have paid 3%, half of 6%)

The amount of duty payable in the absence of this relief would be reduced from previous years given the decline in land values and the reduction of the rate of Stamp Duty applicable to non-residential property in Budget 2012. The purpose of reducing the Stamp Duty rate was to follow a policy of having low rates and fewer exemptions or reliefs. As the Deputy will appreciate, it would not be appropriate for me to comment on matters that may or may not feature in the Budget.