In delivering today’s budget, the Minister for Finance Mr. Brian Cowen has made wholesale changes to the unjust and antiquated stamp duty system, which most in the property profession have been calling for, for sometime.

Commenting on the changes Director of Tuohy O’Toole Peter Tuohy says “the stamp duty changes which have been announced today as part of this year’s budget are most welcome and are long overdue. The previously penal system of stamp duty is now much fairer and indeed far less complicated with just two bands replacing six. The property industry welcomes the changes particularly at this time in the marketplace and this should help to restore confidence at a time when it is needed. The stamp duty question has now been answered and buyers now purchase in the knowledge that they are saving money. We would however not expect to see the full effects of today’s announcement until the first or second quarter of 2008”.

For here forward the stamp duty for second hand residential property is as follows: -

€0 - €125,000                          exempt

€125,000 - €1,000,000               7%

€1,000,000 – upwards                 9%

Of particular interest under the new measures is that when the level of consideration paid brings a buyer into the higher band, it is only the amount over the threshold that is charged at the higher rate.

The stamp duty for commercial property and sites has been unchanged as have the rates for new homes