Budget 2018 Property Related Measures

€750m for housing finance
Up to €750 million of the Ireland Strategic Investment Fund, ISIF, to be made available for commercial investment in housing finance. The funds will be made available to a new vehicle to be known as Home Building Finance Ireland, or HBFI. The additional funds have the potential to fund the construction of an additional 6,000 homes.

Stamp Duty 
Change of rate of Stamp Duty on Non-Residential Property from 2% to 6% from midnight on 10 October. A refund scheme to operate in relation to commercial land purchased for the development of housing.

Vacant site levy
 A doubling of the current 3% levy rate that applies in the first year to 7% in the second and subsequent years. What this means in practical terms is that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019. If they continue to hoard their land in 2019, they will pay 7% in 2020, resulting in an effective vacant site levy of 10% per cent over the previous two years.

Pre-letting Expenses
Rented Residential Property 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. A cap on allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within 4 years.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.

Capital Gains Tax 
A reduction of seven year period over which owners must retain qualifying assets to enjoy full relief from Capital Gains Tax to four years. An amendment will be made to Section 604 of the Taxes Consolidation Act 1997.

Mortgage Interest Relief
Tapered extension of mortgage interest relief for remaining recipients – owner occupiers who took out qualifying mortgages between 2004 and 2012. 75% of the existing 2017 relief will be continued into 2018, 50% into 2019 and 25% into 2020. The relief will cease entirely from 2021.