Catherine Murphy (Kildare North, Social Democrats)
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145. To ask the Minister for Finance further to Parliamentary Question No. 231 of 20 June 2017, if he will address the anomaly that has arisen whereby a number of persons sharing accommodation in circumstances in which the aggregate rent for that accommodation is in excess of €2,500 per month are liable for a 1% levy; if he will abolish this levy in respect of tenants sharing a rented property or otherwise address this anomaly in view of escalating rents and the need for persons to share accommodation; and if he will make a statement on the matter. [32522/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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My predecessor’s reply to Deputy Murphy’s Parliamentary Question number 231 of 20 June 2017 (alternatively numbered 26932/17) set out the stamp duty treatment that applies to leases of residential property. The Deputy has now asked about the 1% stamp duty charge where a lease exceeds 35 years, or is for an indefinite term, and where the rent exceeds €30,000 per annum (or €2,500 per month). As stated in the previous reply, where a lease is for an indefinite term, it is treated as a lease for a deemed fixed period of one year, with the lease growing each year by a further year.

The Deputy refers to an anomaly whereby the stamp duty charge applies in situations where a number of persons share a residential property with each of them contributing to the overall rent. I am advised by Revenue that there is no anomaly in such a situation and that the Stamp Duties Consolidation Act 1999 provides for this situation. Section 1 of this Act makes a lessee (i.e. a tenant) the accountable person for the stamp duty charge and section 2 provides for a situation where there is more than a single accountable person by making each accountable person jointly and severally liable for the stamp duty charge. The 1% stamp duty charge is levied in relation to a lease and not in relation to an individual lessee. Similarly, in relation to the purchase of a residential property, the same stamp duty charge applies regardless of the number of people involved in the purchase.

I have no plans to change the basis of liability to stamp duty on leases.