Finance Bill 2016
Russell Brennan Keane’s Tax experts provide you with a detailed analysis of Finance Bill 2016 published yesterday and insights into what it means for you and your business.
Finance Bill 2016 gives legal effect to the measures announced in last week’s Budget. In addition there are a number of measures in the Finance Bill that were not included within the Budget.
The Finance Bill has introduced a range of measures aimed at stimulating the property market including the “Help-to Buy” scheme, phased restoration of full tax relief for interest on rented residential properties (relief increasing by 5% per annum from 2017), extension of the Living City tax incentive to landlords, extension of the Home Renovation Incentive until 2018 and the increase in the Rent a Room exemption limit to €14,000 pa.
The Finance Bill also includes specific provisions targeted at so called “vulture funds” and the perceived abuse of Irish tax provisions. There had been speculation that due to the intense lobbying by interested parties that the legislative amendments would have been deferred until sometime in 2017, however the draft legislation has been included in the Finance Bill.
On a welcome note the Finance Bill legislates for the reduced 10% rate of tax where the conditions for Entrepreneur Relief are satisfied. Hopefully this is not the end of the improvements to Entrepreneur Relief and we expect that in future Finance Bills the lifetime cap of €1m will be increased (UK equivalent is £10m).
One item of particular interest in the Finance Bill is the detail of the enhanced provisions aimed at offshore tax avoidance. In Budget 2017 the Department of Finance had indicated that this provision was forecast to raise €30m so it is an area in which Revenue feel that there is significant non-compliance.
The provisions in the Finance Bill have effectively proposed removing the ability of taxpayers to avail of the existing qualifying disclosure regime (reduced penalties) where their non-compliance involves off-shore assets/income. The existing disclosure regime will continue to apply up until 1 May 2017, effectively giving taxpayers a period of grace in order to voluntarily approach Revenue and avail of the existing disclosure regime. The message is loud and clear - come to us before we come knocking on your door. A very appropriate message delivered just in time for Halloween!
We hope you will find something of interest in our RBK Analysis of Finance Bill 2016;
- Personal Tax
- Support for the Housing Market
- Business Tax
- Capital Taxes
- Agri & Fisheries Business
- Other Measures
To discuss in confidence what the measures mean for you or your business please contact a member of our specialist tax team or your usual RBK contact.
Revised Entrepreneur Relief: Rewarding Pioneers in BusinessDownload