Bríd Smith (Dublin South Central, People Before Profit Alliance)
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159. To ask the Minister for Finance if he will examine changes to the tax rules affecting section 31E of the stamp duty legislation which are impacting schemes to help elderly persons remain in their homes when they experience financial difficulties (details supplied); his plans, if any, to exempt such products from the current rules; and if he will make a statement on the matter. [46237/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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In 2021, I introduced a higher 10% rate of stamp duty on multiple purchases of residential properties. The rate was introduced by Financial Resolution on 19 May 2021 and is provided for by section 31E of the Stamp Duties Consolidation Act 1999. It applies where a person buys 10 or more residential properties, excluding apartments, in any 12-month period. The background to the introduction of the measure was the purchase by institutional investors of all, or a significant proportion of, residential housing estates, thus denying first-time and other buyers an opportunity to purchase a home. The 10% rate is intended to provide a significant disincentive to this practice.

To ensure that the higher rate of duty does not have an adverse impact on the delivery of social and affordable housing in the State, section 31E contains a specific exemption from the 10% rate of duty for residential units that are leased to a local authority for onward leasing to a household that qualifies for social housing support. The relief is intended to apply in respect of residential units acquired under the ‘mortgage-to-rent’ scheme. I have also introduced two specific repayment schemes in relation to section 31E, which are provided for by sections 83E and section 83F of the Stamp Duties Consolidation Act 1999.

Section 83E, which was introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2021, provides for a partial repayment of stamp duty paid at the higher 10% rate where, within 2 years of acquisition, a property is leased to a local authority or an approved housing body for the purpose of social housing. Section 83F, which was introduced by the Finance (Covid-19 and Miscellaneous Provisions) Act 2022, provides for a partial repayment where, within 6 months of acquisition, a property is designated as a “cost rental dwelling”. In the case of both schemes, the amount to be repaid is the difference between the amount of stamp duty paid at the higher 10% rate and the amount of duty that would have been payable had the standard rate applied.

It has subsequently come to my attention that Section 31E may impact on a number of other forms of acquisition that it was not intended to apply to, and I will consider introducing similar measures to remove that impact where a convincing case for doing so is presented to me.

I am sure the Deputy will appreciate that I cannot give any indication of any plans I may have in this regard, be they for Budget 2023 before it is announced, or Finance Bill 2022 in advance of its publication.