The Government has discounted reports that the Revenue has decided to impose stamp duty on first-time home buyers whose relatives help them with the deposit.
Minister Noel Dempsey, who was standing in for the Taoiseach in the Dail today, said no decision had been taken by Revenue on that issue.
But he said there were concerns that some people, who were not first-time buyers, were trying to abuse that benefit, so the entire issue was being examined by Revenue.
The Minister made the comments after the Revenue clarified the situation for purchasers who use the names of their parents on mortgage documents.
Hundreds of home buyers who use their parents' names on mortgages face losing out on a stamp duty exemption.
New stamp duty guidelines introduced in December mean first time home buyers were exempt on stamp duty on homes worth up to €317,000.
Many young people are struggling to buy property and they frequently use their parent names as signatories on mortgages. In these cases, the Revenue has decided none of the purchasers are entitled to the exemption of stamp duty.
On a home purchased for €300,000, for example, that would mean the purchaser would have to pay an additional €15,000. But if a parent acts as a guarantor on a loan the borrowers can still be exempt.
Today the Irish Bankers Federation said it did not want to see genuine home buyers disadvantaged.
In a statement this afternoon, Revenue denied that there had been a 'clampdown' on stamp duty relief for first time buyers, adding that there was nothing new in the way Revenue was applying the legislation.
The Revenue said that in response to a number of requests, it published a clarification of the position on its website in April. In answer to questions about those who received financial help to purchase a property from someone who is not a first time buyer, the Revenue said:
'Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.'
But it added that where someone who is not a first-time buyer acts as a guarantor for a loan this would not result in loss of the relief. Loss of relief would only occur in cases where the person who is not a first-time buyer is a co-mortgager and their name appears on the mortgage.
