Taxation measures aimed at easing price pressures in the housing market have been given effect in the second Finance Bill.

The Bill, presented by the Minister for Finance, Mr McCreevy yesterday, aims to strengthen the position of first-time-buyers and to curb short-term speculative demand. The Bill confirms the changes to stamp duty passed by the Dail last week. These include an exemption from stamp duty on homes up to the value of £150,000 (€190,461) purchased by first-time-buyers and reduced rates on higher amounts.

The legislation makes provision for transitional arrangements to apply where contracts had been entered into before June 15th where the old stamp duty rates will apply. It also incorporates a 2 per cent anti-speculative tax to curb short-term speculative buying of houses by investors. This tax will apply for three years to second and additional residential properties acquired on or after June 15th. Some exemptions from the tax are provided for including where properties are located in areas where certain tax incentives have been designated. These include town and urban renewal schemes, the rural renewal scheme, the student accommodation scheme and the park-and-ride scheme.

Exemptions are also provided for heritage homes and listed and holiday homes. Those liable for this tax must pay it before November 1st each year with first returns to be received in November 2001. The valuation date for the tax will be April 6th and will be taken as the market value apart from the first year when the value will be the actual cost of the property.

The Minister expects the Bill will be passed before the Dail summer recess.