Press Release 08.12.05

Budget 2006 Auctioneers Regret Budget Did Not Alter Stamp Duty Rates

The Institute of Professional Auctioneers and Valuers has expressed disappointment that Budget 2006 did not raise the Stamp Duty thresholds on second-hand homes, most notably at the penal 9% rate. IPAV Chief Executive Liam O’Donnell said that the Minister in his speech, while noting the major contribution of the construction industry to the economy, did not widen the bands for Stamp Duty as had been widely expected. “The purchase of a second-hand home with a value of more than €381,000 currently incurs a rate of Stamp Duty of 7.5% and a home with a value of more than €500,000 a crippling rate of 9%. Yet an ever increasing number of homes, particularly in the Dublin area regularly exceed these figures, thereby putting an enormous burden on the purchaser,” he said. Mr O’Donnell said there had also been an expectation that the Minister would continue this year to broaden the exemption for the purchase of second-hand homes by first-time buyers. The limit will continue to remain at €317,500 which would only purchase a modest house in the capital. “The Budget was pretty neutral towards the property sector but it is regrettable that the Minister and the Government did not see fit to widen the Stamp Duty thresholds,” he said. “Let’s hope the Government will revisit this issue between now and the passage of the Finance Bill.”
Ends.

For further information contact Liam O’Donnell on 087-2369343 or Tim Ryan on 087-2471423