Cowen aims to prevent stamp duty evasion by home buyers

Conor Keane, Business Correspondent

It has emerged that couples were buying houses as two separate individuals in a bid to reduce the level of stamp duty.

In documentation outlining the provisions of the Finance Bill 2005, the Department of Finance states: “A practice has recently developed where a house is being bought by more than one purchaser, whereby each purchaser takes a separate conveyance in the house. This appears to be an attempt at avoiding the payment of stamp duty at the rate applicable to the total value of the house, as individual purchasers have made claims to Revenue for reduced stamp duty rates on the basis of the consideration of their individual conveyance.

“Revenue have rejected these claims and the bill contains a provision to counteract this practice for the future.”

The owners of designated period homes, who receive tax write-offs for the repair and maintenance, will now have to advertise when the properties are open to the public.

To benefit from this substantial tax relief the owners of houses like Glin Castle, Assolas House and Bantry House must advertise when the premises are open to visitors. They must also allow access to the whole or substantial part of the building and garden.

The owners of the stately piles must ensure access is afforded for a period of at least 60 days in any one year including not less than 40 days during the period May 1 to September 30. Ten of these days must be either Saturday or Sunday.

The houses must be open to the public for at least four hours each day, and the admission price, if any, must be reasonable so as not to preclude the public from seeking access.

Property owners must also grant right of access to Revenue officials to an approved building to monitor compliance with the reasonable access requirements.