The 2018 budget was announced on the 10th October 2017, the main changes affecting teh property market are outlined below.
IRELAND STRATEGIC INVESTMENT FUND
- The Minister announced a €750m investment fund to be made available for commercial investment in housing finance. The funds will be made available through a new vehicle to be known as Home Building Finance Ireland (H.B.F .I.)
- The rate of Stamp Duty on commercial property transactions increases from 2% to 6% with effect from midnight on 10 October 2017.
- A Stamp Duty refund scheme relating to commercial land purchased for the development of housing is to be introduced subject to certain conditions including a requirement that developers will have to commence the relevant development within 30 months of the land purchase.
VACANT SITE LEVY
- The 3% levy that applies in the first year is to increase to 7% in the second and subsequent years. This means that any owner of a vacant site on the register who does not develop the land in 2018 will pay a 3% levy in 2019 and will become liable to the increased rate of 7% from 1 January 2019.
7 YEAR PROPERTY CGT RELIEF
- The 7 year period for which owners had to retain qualifying assets to enjoy full relief from Capital Gains Tax (CGT) is reduced to 4 years. Accordingly owners can sell qualifying assets between the fourth and seventh anniversaries of their acquisition and still obtain full relief from CGT on such chargeable gains.
- To encourage owners of vacant residential property to bring that property into the rental market, a new deduction is being introduced for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more.
- Allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within 4 years. The relief will be available for qualifying expenses incurred up to the end of 2021.