The Government has published proposed legislation to eliminate all stamp duty liability for first-time buyers, to apply to all contracts signed on or since 31st march 2007.
There will be no change in the stamp duty regime for all other house buyers, who will continue to pay punitive rates of duty e.g. 9% on house/apartment purchases of over €635,000.
Thus Stamp Duty will continue to act as a disincentive to people who wish to trade-up or trade down e.g. it currently adds €58.5k to the buyer’s costs for a house/apartment purchased at €650k.
The Government offers the following explanation for not modifying the stamp duty costs to non-first-time buyers:
They argue that the reduction in stamp duty would simply be added to the asking price by the vendor, thus increasing house price inflation and removing any benefit to the buyer arising from the reduction in stamp duty.
In other words, to prevent the risk arising that the vendor might screw the seller for the amount of the stamp duty, the Government itself will guarantee that the buyer continues to be screwed for the amount of the stamp duty. That’s some deal!
The reality is that the Government raises billions of euros each year through this punitive tax. They'd have to work harder if they gave some of it up.
- ► 2010 (44)
- ► 2009 (78)
- ► 2008 (100)
- Venus v. Mars - again!
- Britain to reciprocate with Ahern Chair endowment
- Tony Blair's Legacy - and he hasn't even left yet....
- How Gerry Adams paid for that Donegal holiday home...
- Government saving buyers from sellers!
- Bertie's Missing Money
- Political Banners
- An Taoiseach mis-speaks, again.
- Outgoing FF Minister claims authorship of Environm...
- Greens - the new Fianna Fail Lite
- Greens in office but not in power!
- Who'll be next leader of Green Party?
- Sargent sacrifice a necessary fig-leaf for Greens
- The fate of the man in the white suit?
- Blair to become catholic deacon?
- Chavez - time to Chile out!
- One Night in Paris
- How do you get on Pat Kenny's panel?
- Green Party VAT Policy seems misguided
- Boyd Barrett Bullsh1t
- It's Thatcher time
- Dutch blocked air support before Srebrenica massac...
- Are FF the only party honestly enaged in the curre...
- The Mother Teresa of broadcasting
- Who'll win Political Gobshite of the Year 2007?
- ▼ June (25)
- ► 2006 (265)