Madam, - I wish to draw your attention to a gross inequity in the Irish stamp duty system. Under significant political pressure, extended stamp duty exemptions were recently introduced for first-time purchasers of property. While this move is welcome, the legislation concerning stamp duty on domestic leases has been unchanged.
Under Schedule 1 of the Stamp Duty Consolidated Acts (SDCA), 1999, leases of domestic dwelling houses or apartments with an annual rent of less than €19,050 are exempt from stamp duty. However, a lease for any amount above this ceiling is liable to stamp duty at a rate of 1 per cent of the annual rent.
Due to spiralling rents, the current ceiling of €19,050 a year (€1,587.50 a month) is grossly inadequate. For example, if three people were to share an apartment with a rent of €1,600 a month (quite common in many areas of Dublin), stamp duty would be payable by the tenant(s) on the creation of the lease.
This is another example of the Government ignoring the needs of the younger generation of urban workers. Many young professions cannot afford to buy a property and have to enter into leases to secure accommodation.
Is it any wonder that many of the Celtic Tiger's most ambitious sons and daughters have emigrated in search of a place where their income can meet their expenditure requirements?
- Yours, etc,
KEVIN MAHON, Beechwood Court, Stillorgan, Co Dublin.