Tuesday, 14 October 2014

Property related matters in the Budget today.

The following has been announced in the Budget in relation to property

1. The home renovation scheme has been extended to include rental properties, therefore landlords can benefit

2. As expected the CGT exemption for 7 years has been abolished and expires at the end of the year.

3. The 80% windfall tax has been abolished and gains on the sale of development lands will be taxed at the standard 33%.

4. First time buyers will be able claim back full relief on the dirt tax payed on their savings.

5. Indicated that a consultation process will take place to address the issue where landowners are holding on to development land in the expectation of an increase in values.

6. Relief introduced for the new water rates reducing annual charge by 20%

7. Other announcements
a) 41% tax rate reduced to 40%
b) 8% USC charge over €70,000 income
c) No change in petrol or alcohol
d) 40 cent on cigarettes
e) No change in VRT