The Gazette 1952-1955

knowledge derived from attending lectures, reading the prescribed books and subsequently passing the examinations and graduating, but what is far more important and far more valuable in after life is the liberal and cultural background, which can be absorbed only by a keen University student, that is, the young man or woman who takes an active part in all the aspects o f University life. Stamp Duties “ It is not the business o f this Society to comment on the general policy o f the Minister for Finance with regard to the raising o f revenue to balance the Budget, except where the method o f taxation directly concerns solicitors in their professional capacity. In other words, I am not making any reference to solicitors as taxpayers, but rather as collectors of taxes, and, incidentally, solicitors are obliged to play a very large part in the collection o f the State Revenue.' It is scarcely an exaggeration to say that the average practitioner has to spend about half his working day in preparing and com­ pleting forms, whose one object is to put money into the State coffers. “ There are two forms o f taxation that are of particular concern to solicitors. I refer to stamp duties on transfers o f land and death duties. Dealing first with stamp duties; up to the year 1947 the position was clear and the rates were reasonable. As will be recalled, if the consideration did not exceed £500 and a certificate to that effect was endorsed on the instrument, duty was calculated at 10 - per £100. In all cases where the consideration exceeded £500, duty was calculated at £ 1 per £100. Voluntary dispositions were similarly assessed, the duty being based on the market value o f the property on the date of the transfer. Then suddenly, and quite unexpectedly, under the Finance Act o f 1947, in all cases where the consideration or the market value o f the property exceeded £500, the rate of duty was quintupled, and that on condition that the person or persons acquiring the entire beneficial interest in the property passing, could certify that he or they were Irish nationals. For non-nationals the duty was raised from 10/-, or £ 1 per cent., to £25 per cent. That rate o f duty is still in force, but presumably because it had and still has a political and economic significance it would not be proper for me to make any comment upon it. As regards the rates of duty payable by Irish nationals, there have been some concessions since the 1947 Act. In brief, the basic rate has been reduced from £5 per £100 to £3 per £100 on Conveyances on Sale and in most cases o f voluntary dispositions, that is transfers from one relation to another, duty is assessed at £ 1 per cent, on the market value of the property as of the date o f the instrument.

“ It Is interesting to compare the present rates of duty payable in this country with those obtaining in Great Britain. The current British rates are as follows :— 10 - per £100 where the consideration does not exceed £500 ; 20/- per £100 where the consideration exceeds £500 but does not exceed £ 3 ,000! 3 ° ~ pet £100 where the consideration exceeds £3,000 but does not exceed £3,450 and in all cases where the consideration exceeds £3,450, 40/- per £100 or 2 per cent. Therefore, in England, to take a concrete example, the stamp duty on a conveyance on sale where the consideration is £3,000 is £30. In this country, stamp duty on a similar conveyance is £90. As you know from your experience, the vast majority o f the houses bought and sold here each year vary in value from about £1,500 to £3,000. There are comparatively few properties in this country that are sold for more than £3,000, and, on the other hand, there are very few residences that fetch less than £1,000. “ I realise full well that the Minister must raise these taxes to balance the Budget, and I dare say that if he were to make any substantial remission on stamp duties, he would have to find the money through some other form o f taxation, but there is one concession that I would very ardently ask him to make, and if possible to introduce it by way of an amendment to this year’s Finance Bill. I refer to the purchasing of houses by engaged or newly- married couples. It is not for me to moralise, but everybody realises that it is in the national interest to increase the marriage rate and to encourage earlier marriages. I would suggest that where a property is being bought by one or other o f the parties to an intending marriage, or a recently solemnised marriage, that stamp duty on the Con­ veyance 1hould be reduced from £3 per cent, to say 10/- per cent. O f course, before such a con­ cession could be granted the Revenue Commissioners would have to be satisfied that the newly-married couple intended to live in the house for a specified number of years and that there would be no question of an unduly early sale or letting. I cannot think that the suggestion which I have outlined should cause undue administrative difficulties. The pro­ cedure would be somewhat similar to that in obtain­ ing a refund of stamp duty on conveyances to which grants under the Housing Amendment Acts are applicable. Death Duties “ I now turn to death duties. It is true that in comparison with England the rates o f duty payable here in respect o f very large estates are considerably smaller than in England, but in all cases where the assets do not exceed £50,000, the rates o f duty in the respective countries are virtually the same, but 5