The increase in the rate of duty to apply on the transfer/conveyance of non-residential property (to include assets such as commercial property, agricultural land and goodwill of a business) from 6% to 7.5% is effective since Budget night, having been passed by Financial Resolution. The Finance Bill also makes amendments to ensure that the potential refund available where land is used for residential development remains the same by ensuring the overall rate in such cases remains at 2%. Transitional measures are in place to allow the 6% rate to continue to apply where a binding contract was in place prior to 9 October 2019 provided the related transaction is executed prior to 1 January 2020.
The Finance Bill legislates for a number of amendments to the REIT regime as follows:
Measures 2 to 4 above took effect form Budget night by Financial Resolution.
Finance Act 2016 introduced a 20% withholding tax applicable to return on investments made by certain investors in Irish regulated funds which hold Irish real estate investments (IREFs). Finance Bill 2019 includes a number of anti-avoidance measures in respect of IREFs, designed to counteract perceived aggressive tax planning by some IREFs.
The amendments are as follows:
Section 477C TCA 1997 provides income tax relief to assist first time buyers with obtaining the deposit required to purchase or build their first home. The scheme was due to expire at the end of 2019, however, is has been extended in its current format for a further two years, to 31st December 2021.
Living City Initiative is a property incentive scheme and has been extended until 31st December 2022. Qualifying expenditure incurred under the scheme may qualify for tax relief under the scheme.
Return to Budget 2020 Analysis.
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