Revenue has bowed to pressure and changed its position on blocking stamp duty exemption for first time home buyers whose parents sign on mortgage documents in certain circumstances.
The organisation has issued a new statement in response to the controversy.
It said it was prepared to accept in certain circumstances that a child who was a first-time buyer would not be prevented from claiming stamp duty exemption where a parent's name was on the mortgage.
This differs from its original position - that if one of the parents' names appeared on the mortgage documents their children were not eligible for the exemption on stamp duty.
Revenue has set out four conditions under which parents could sign on the mortgage document but the children could still avoid paying full stamp duty.
Revenue said the transfer of the house had to be taken in the name of the child, while the parent should not take a beneficial interest in the house.
Also, the parent must sign on the mortgage solely at the request of the lending institution in order to provide additional financial security. The parent is not allowed to put money into the mortgage or become a legal owner of the home.
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 parents' names as signatories on mortgages.
