Budget 2008 - Stamp Duty

Residential Property - New Rate Structure

A simplified system, incorporating an exemption of €125,000 with 2 rate bands of 7% and 9%, is being introduced for instruments executed on or after 5 November 2007. The 7% rate applies up to €1,000,000 and it is charged on the excess of the consideration over €125,000. The 9% rate applies where the consideration exceeds €1,000,000 and it is charged on the excess of the consideration over €1,000,000.

Consideration (or Aggregate Consideration) exceeds €127,000*	Rate of Duty
First €125,000	Nil
Next €875,000	7%
Excess over €1,000,000	9%

*To fully preserve the existing exemption, transactions, where the consideration (or aggregate consideration) does not exceed €127,000, are exempt from stamp duty.

Reduction of Claw back Period

The claw back period for first-time buyer relief and owner-occupier relief is being reduced from 5 years to 2 years in certain circumstances.

Financial Cards

The stamp duty chargeable on financial cards is being reduced. The changes are set out in the table below.

Card Type	Old	New
Charge cards & Credit card	€40	€30
ATM cards	€10	€5
Debit cards	€10	€5
Combined ATM/Debit cards	€20	€10

Cheques/Drafts

The stamp duty chargeable on cheques/drafts is being increased from 15 cent to 30 cent.

Site to Child Exemption

The exemption threshold for a site, which is transferred from a parent to a child for the purposes of constructing the child’s principal private residence, is being increased from €254,000 to €500,000. A similar change will apply for CGT purposes. These changes will be contained in the 2008 Finance Bill.

Stamp Duty and Capital Gains Tax

An exemption from Stamp Duty and Capital Gains Tax applies where a parent transfers a site, with a market value not exceeding €254,000, to a child to enable that child construct his/her principal private residence. This threshold has been increased to €500,000 for transfers on or after 5 December 2007.

Capital Acquisitions Tax

There were no changes announced in the Budget.