Christmas arrived early yesterday for Irish house buyers when Santa Cowen unwrapped his Stamp Duty gift for the nation. Stamp Duty has finally been reformed - a reform that many in the property and construction sector have been calling for for several months.

Following on from the reform introduced in March 2007, when stamp duty was abolished for First Time Buyers, the Finance Minister Brian Cowen turned his attention to second hand property. Mr. Cowen has introduced a new stamp duty system which, according to Neil Doherty of Sellityourself.ie, is much simpler, more equitable and openly transparent.

There is now just one rate of stamp duty - 7% - for all second hand residential property up to €1 million. The first €125,000 of all properties is exempt. All balances over €1 million are taxable at 9%.

As a result of this new reform, purchasers of second hand property will now see a substantial saving in their stamp duty liability. It is hoped that this will stimulate the sluggish property market. Property sellers are now saved the consideration of pricing their property according to stamp duty bands (with the exception of those properties valued around the €1,000,000 mark).

The following tables illustrate the new stamp duty rates, and the savings that purchasers will experience at different property prices.