Thursday, 15 October 2015

Property Partners Barry Herterich Responds to Budget 2016


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.

No comments:

Post a Comment