IPAV PRESS
RELEASE |
||
07th August
2006 |
||
AUCTIONEERS
CALL FOR ABOLITION OF STAMP DUTY FOR FIRST-TIME BUYERS |
||
| Auctioneers today (Monday) called for radical changes to Stamp Duty rates on residential houses, including its total abolition for all first-time buyers | ||
| The Chief Executive of the Institute of Professional Auctioneers and Valuers (IPAV), Fintan McNamara, said the continuing rise in mortgage interest rates was a cause of concern and the Government was now in a very health financial position to provide a measure of relief.. | ||
| “Recently released figures show that the Government brought in a staggering €1.9 billion in Stamp Duty so far this year, an increase of 43 per cent on the same period in 2005,” he said. “And Capital Gains Tax is also up 15 per cent on last year. The Government and notably the Minister for Finance should now widen the Stamp Duty bands considerably and give a total exemption to first-time buyers. so as to give young people a fair chance to get on the property ladder.” | ||
| He pointed out that with the average cost of a house in the greater Dublin area close to €500,000, the current Stamp Duty bands are far too restrictive. | ||
| “For example the penal 9 per cent rate kicks in at €635,000 which is the price of a very modest house in the capital. This figure should be raised substantially in the December Budget.” | ||
| The IPAV chief said the widening of Stamp Duty bands would be self-financing as it would free up much more movement in house sales with more and more people trading up or down. | ||
| “This Government has had more than its fair take from residential housing,” he said. “When combined with the VAT take on new homes, there is a total imbalance on the amount of Exchequer funding coming from one sector. There is a strong social aspect to providing housing for all citizens of the State and the Government now has an ideal opportunity to ease the burden on house-buyers.” | ||
| Mr McNamara said IPAV will be lobbying the Minister for Finance on this issue in the coming weeks as he makes his preparation for Budget Day. | ||
| Note for Editors: | ||
| CURRENT STAMP DUTY RATES ON RESIDENTIAL PROPERTY | ||
Market Value |
First Time Owner-Occupiers (see below)* |
All Other Buyers (see below)* |
| Up to €127,000 | EXEMPT | NIL |
| €127,001-€190,500 | EXEMPT | 3% |
| €190,501-€254,000 | EXEMPT | 4% |
| €254,001-€317,500 | EXEMPT | 5% |
| €317,501-€381,000 | 3% | 6% |
| €381,001-€635,000 | 6% | 7.5% |
| Over €635,000 | 9% | 9% |
| * New Homes Exemption for Principal Private Residences Only | ||
| New homes up to 125 sq. m. that are bought as principal private residences are exempt from stamp duty, if a floor area certificate is provided as required by the Department of the Environment, Heritage & Local Government. | ||
| Where properties bought as principal private residences exceeds 125 sq. m., stamp duty is payable on the site value or 25% of the full value, whichever is greater. For example, if such a property is worth €1,000,000 and the site value is €350,000, stamp duty is payable on €350,000 at the rate applicable to that figure, i.e. 3% (€10,500) for first-time buyers, or 6% (€21,000) for others. | ||
| Ends | ||
| 07 August 2006 | ||
| For further information contact: | ||
| Fintan McNamara on 01 - 6785685 or | ||
| Tim Ryan Communications on 087 - 2471423 | ||