Budget 2016 – Housing
Measures
▪ Property
tax re-evaluation has been postponed until 2019. Minister Michael Noonan says
this will mean that home owners will not be faced with significant increases in
their LPT in 2017 as a result of increased property values.
▪ Elsewhere,
the Group A tax-free threshold for Capital Acquisitions Tax, which broadly
applies to transfers between parents and their children, is being increased
from €225,000 to €280,000.
▪ Revised Capital
Gains Tax relief from 2016 sees reduced rate of 20% for disposal in
whole or part of a business up to an overall limit of €1m in chargeable
gains.
▪ Meanwhile,
NAMA is to deliver 20,000 new residential homes by 2020 at a cost of €4.5
billion. 90% of these will be in the Greater Dublin area.
▪ The
allocation for social housing is to be increased by €69 million, to €414
million. This will aim to help local authorities secure accommodation for an
additional 14,000 households.
▪ Minister
for Social Protection Brendan Howlin is making €10m available from the proceeds
of the sale of Bord Gáis Eireann for an affordable housing pilot scheme.
▪ The
current allocation for emergency accommodation of homeless people is also being
increased by €17m.
▪ The Home
Renovation Incentive has also been extended until 31 December 2016.
Property Partners welcomes the postponement of the property tax re-evaluation until 2019 citing that this will mean that home owners will not be faced with significant increases in their LTP in 2017 as a result of increased property values.
Property Partners also welcomed
the announcement of an increase of the Capital Acquisitions Tax tax-free
threshold, for transfers of properties between parents and their children,
which rises from €225,000 to €280,000. This is expected to be the start of a
process that will see it increase to €500,000 over a three to five year period.
For
more details of how the Budget will affect you, please contact Barry Herterich at
Property Partners Barry Herterich on (051) 330465.
