Thirteen property deals worth over €1 million each have been exempted from stamp duty since the Government abolished the tax for all first-time buyers from the end of March, writes John Downes.
New figures reveal that the introduction of the measure has cost the exchequer more than €33 million in a total of 1,661 first-time-buyer transactions in the first six months of its implementation.
The figures, released by Minister for Finance Brian Cowen, show that the transactions relate to €701 million worth of properties which were exempted from stamp duty between March 31st and September 30th.
This includes 280 backdated refunds of stamp duty, worth €5.4 million, to individuals who executed deeds for the purchase of a residential property between March 31st and July 9th. This was when the Finance (no 2) Act 2007, which allowed for the move, came into force.
Last night, Labour Party spokeswoman on finance Joan Burton claimed the figures - released to the party through a written parliamentary question - show that the exemption is benefiting the well-off significantly.
She added that the relief ought to be targeted at first-time buyers purchasing modest properties, and others who may have availed of first-time-buyer exemption in the past, but are now looking to "trade up" to larger family homes.
The majority of the exempted transactions - 1,271 - relate to purchases of property costing between €317,500 and €450,000. However, according to the figures, 13 first-time-buyer property transactions worth over €1 million each were also exempted.
The properties in question had a combined value of almost €16.5 million, with the cost to the exchequer of exempting them from stamp duty put at €1.5 million. Four further transactions costing between €950,000 and €1 million were exempted at a cost of €350,000 to the exchequer.
This compares with a cost of just €3.9 million to exempt 388 transactions priced at between €317,500 and €350,000 and with a combined value of over €130 million.
The list, contained in a reply by Mr Cowen to the Labour Party, also reveals that a further 664 transactions for properties priced between €350,000 and €400,000 were exempted. This cost the exchequer €8.63 million, while 219 transactions on properties worth between €400,000 and €450,000 were exempted at a cost of €5.5 million.
The list only refers to those transactions which were previously not exempt from stamp duty. As a result, houses below €317,500 which were already exempt, are not included, while most newly built houses were also already exempt, according to Mr Cowen.