Property Professional Groups News - Budget 2012 - Property Measures>>> via SCSI

Stamp Duty

• Stamp Duty – Reduction from 6% to 2% for commercial property effective midnight 6^th.
• No change to current Stamp Duty regime for residential property.
• Consanguinity relief on transfers of non-residential properties to be retained for intra-family transfers to end-2014. Abolished after 1 January 2015.

 

CGT

• Capital Gains Tax incentive for property purchased between midnight 6th December 2011 and the end of 2013;
• Gains relieved from CGT provided property purchased during this period is held for at least 7 years.

 

Mortgage Interest Relief

• Increase in the rate of mortgage interest relief to 30 per cent for first time buyers who took out their first mortgage in the period from 2004 to 2008;
• First Time Buyers who buy a home in 2012 will get mortgage interest relief at a rate of 25 per cent
• Non First Time Buyers who buy a home in 2012 will benefit from Mortgage Interest relief at 15 per cent
• Mortgage interest relief will no longer be available to house purchasers who purchase after the end of 2012 and will be fully abolished from 2018;

 

Legacy Property Tax Reliefs

• Effective from 1 January 2012 a property relief surcharge of 5 per cent will be imposed on investors with an annual gross income over €100,000. This will apply on the amount of income sheltered by property reliefs in a given year.
• Investors in Accelerated Capital Allowance schemes will no longer be able to use any capital allowance beyond the tax life of the particular scheme where that tax life ends after 1 January 2015. Where the tax life of a scheme has ended before 1 January 2015, no carry forward of allowances into 2015 will be allowed.

 

CAT

• The current rate of 25% is being increased to 30%. This increase applies in respect of gifts or inheritances taken after 6 December 2011;
• The current Group A (parent to child) tax-free threshold is being reduced from €332,084 to €250,000 . This reduction applies in respect of gifts or inheritances taken after 6 December 2011.

 

Household charge

• A household charge of €100 is being introduced in 2012;
• This is an interim measure pending design and implementation of a full property tax, which will apply in 2014.

 

CGT

• increase in headline rate of CGT has increased from 25% to 30%

 

Stamp Duty

 

NAMA

 

• The Minister has decided not to proceed with proposed changes to legislation affecting commercial property leases entered into prior to 28th February 2010, in terms of interfering with upward only rent reviews.
• NAMA has a policy guidance for dealing with tenants’ difficulties arising from upward only rent reviews.
• NAMA may approve rent reductions where it can be shown that rents are in excess of the current market levels and continued viability of the business is threatened. Number of conditions to be satisfied.
• Provision for the appointment of an independent valuation of market rent where necessary.
• Minister to establish an Advisory Group (“The Group”) to advise on NAMA’s strategy and its capacity to deliver on that strategy through property disposal and the ongoing management of assets;

 

Mortgage Arrears

• Government established a group to consider necessary actions.
• A formal announcement on the next steps is expected shortly.

via societyofcharteredsurveyorsireland.newsweaver.com

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