THE STAMP DUTY system has been given a total overhaul as every house purchased, old or new, first-time buyer or not, will be subject to at least a 1 per cent levy.

In total, nine property-related reliefs will be abolished in Budget 2011.

• The one that will affect residential property will see a flat rate of 1 per  cent levied on all residential property transaction up to €1m. A 2 per cent levy will be subject to transactions above €1m.
• All existing reliefs and exemptions on stamp duty will be completely abolished, which Brian Lenihan said would lead to a “far greater degree of transparency” to the housing market.
• The new levy will apply to all sales on or after December 8, 2010. Anyone who has entered a binding agreement before December 8 and executes it before July 1, 2011 will not lose out on the conditions that prevailed before today’s Budget was announced.

Previous to today, stamp duty was not applicable to all first-time buyers.

• In better news, there will be “more access” to the tenant purchase scheme – there will be higher discounts available on houses being sold under this initiative.
• There will also be a supplement to the existing Home Energy Savings Scheme which will provide tax relief at the standard rate for expenditure up to €10,000 on making houses more energy-efficient. The Government hopes this will both upgrade the energy efficiency of 15,000 homes and also that stimulate employment in the building trade.