Eoghan Murphy (Dublin South East, Fine Gael)
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305. To ask the Minister for Finance his plans to exempt those over 66 years of age from stamp duty if they downsize their homes and purchase another; and if he will make a statement on the matter. [37808/15]

Michael Noonan (Limerick City, Fine Gael)
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I have no plans to introduce a measure along the lines suggested by the Deputy. The Deputy will appreciate that tax reliefs and exemptions have costs which have to be paid for and their introduction must be considered only where there is a clear economic and social policy need to be addressed.

Stamp Duties are payable on the acquisition of residential property. The current rates are 1% on values up to €1M and 2% on any balance over that. I do not consider that a rate of 1% on the purchase of a property would represent a serious disincentive to any property owner considering trading down.

In relation to Capital Gains Tax (CGT), an exemption is in place on the disposal of a person's principal private residence.  The exemption applies to any gain made on the disposal of an individual's dwelling house together with land occupied up to an area of one acre, excluding the site of the house. Full CGT relief applies where the period of occupation matches the period of ownership, and partial relief applies where the house has not been occupied by the individual for the full period of ownership.

It should be noted in relation to local property tax (LPT), that where a person downsizes their residential property, assuming they stay in a similar location to the property they are selling, their LPT liability will, most likely, be less than the amount they would have been liable for on their original property.

Finally, individuals over the age of 65 with annual incomes below €18,000, or couples over that age who are married or in civil partnerships with annual incomes below €36,000 are exempt from DIRT on any savings with a financial services provider. Marginal relief is available for those whose incomes slightly exceed these amounts. This exemption would be available to such persons where the downsizing involved the movement to a property of lower value with part or all of the balance being placed with a financial services provider.

Eoghan Murphy (Dublin South East, Fine Gael)
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306. To ask the Minister for Finance his plans to encourage homeowners to sell a part of their site for development, by, for example, exempting the sale from capital gains tax; and if he will make a statement on the matter. [37809/15]

Michael Noonan (Limerick City, Fine Gael)
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I have no plans to introduce a tax exemption as suggested by the Deputy. I am assuming that the suggestion is being made in the context of the housing supply issues which we face and while I appreciate the intention, I do not believe that the proposal offers any real solution to the problems involved.

It is Government policy to tackle the impediments and barriers to housing supply and the proper functioning of the property market. In this regard, Construction 2020 sets out the Government's strategy for tackling those critical blockages that appear to be inhibiting the sector's capacity including problems in the planning system, the weak balance sheet situation of developers, access to development finance, rigid construction costs and industry capacity constraints - including skilled labour shortages.

I would also like to draw the Deputy's attention to the announcement made in Budget 2016 in relation to NAMA's intention to target the delivery of 20,000 additional residential units before the end of 2020.  90% of the residential units will be provided in the greater Dublin Area, where the demand for housing is greatest. Approximately 75% of these units will be houses, primarily starter homes.

These actions along with other initiatives such as Social Housing Strategy are important in revitalising the sector and increasing the supply of housing however it will take time for the full effect of these measures to be realised.

I can assure the Deputy that the sector's recovery is being actively monitored and where appropriate this Government will adopt additional measures that support the long-term sustainable development of the sector.