Dáil Éireann Debate, Wednesday - 9 October 2024
62. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year revenue of an increase to residential stamp duty to 5% and 6% respectively on properties over €1,000,000, taking account of the announced chances in Budget 2025 in relation to stamp duty; and if he will make a statement on the matter. [40536/24]
View answerI announced on Budget Day that a new 6% rate of Stamp Duty will be applied to the value of residential property in excess of €1.5 million (so increasing the rate applied to that element of a property's value from 2% to 6%), and that the higher rate of Stamp Duty on bulk acquisitions of houses is to be increased from 10% to 15%. Both of the increased rates apply to all relevant instruments of transfer executed after midnight on 2 October 2024.
I also announced on Budget Day that transitional arrangements would apply where there is a binding contract in place before 2 October 2024 and the transfer of the property is finalised before 1 January 2025. In these circumstances a purchaser can benefit from the previous rates. However, any person wishing to rely on the transitional arrangements must produce a copy of the executed instrument of transfer which must contain a certificate to this effect. These were given effect by way of Financial Resolution on Budget night.
The estimated additional revenue received or foregone arising from the introduction of each of the taxation measures I announced in the Budget are set out in the Budget 2025 Tax Policy Changes book which was included in the Budget documentation, a copy of which is available on the Budget 2025 web page on the Gov.ie site.
In relation to the two costings sought, I would refer you to Revenue's pre-Budget ready reckoner, which is available on their website, and which estimates that increasing the stamp duty applied to acquisitions of residential property on considerations above €1 million to 5% would generate an additional €75 million in a full year. While the revenue that might be derived through increasing that rate to 6% on the same basis is not provided, it can be estimated on a straight-line or pro-rata basis. It should be noted that these estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.
An update of the Ready Reckoner is due to issue in the coming weeks.
