Legislation to give effect to the abolition of stamp duty for first-time buyers is likely to be considered by the Cabinet today, in light of the Government's pledge to deal with the issue before the Dáil summer recess in two weeks' time.
The Government meeting today will be the first full Cabinet session since the formation of the three-party coalition almost a week ago. Ministers held a brief meeting after receiving their seals of office at Áras an Uachtaráin last Thursday night.
In its election manifesto Fianna Fáil promised to legislate immediately to abolish stamp duty for first-time buyers. It also promised to make the change retrospective for all deeds presented for stamping to the Revenue Commissioners on or after April 30th of this year.
The pledge was repeated in the programme for government agreed with the Greens and the Progressive Democrats.
The PDs and the main Opposition parties promised more extensive reform of the stamp duty regime, but the Fianna Fáil pledge was quite specific and immediate action was promised.
If the legislation is approved by the Cabinet today it is likely to come before the Dáil for debate next week. One way or another it will have to pass through the House by the end of the following week.
The programme for government also includes the Fianna Fáil pledge to raise the ceiling on mortgage interest relief for first-time buyers from €8,000 to €10,000 for single people and from €16,000 to €20,000 for couples.
The new ceiling will apply to all first-time buyers who have purchased a house over the past seven years and it means that they will be able to claim backdated tax relief for the period.
There is no reference in the programme for government to immediate action on this issue and it may be left until the budget in December.
