Budget 2016-Summary of the changes affecting Property, Stamp Duty and Capital Taxes
NAMA is to provide 20,000 houses between now and 2020. 90% of these in the Dublin area and 75% of the overall total will be starter homes.
Local Property Tax revaluation date postponed until 2019.
The Home Renovation Incentive is being extended until 31st December 2016.
Existing €5 stamp duty on Debit/ ATM cards to be replaced with a 12c charge for ATM transactions, subject to a maximum charge of €2.50 or €5.00 per annum depending on the card type.
Stamp Duty Exemption for Young Trained Farmers has been extended to 31st December 2018. This applies to farmers under the age of 35 years at the date of execution of Deed of Transfer/Conveyance. The Young Trained Farmer must be the holder of a qualification as set out in Schedule 2B and Section 81AA of the Stamp Duties Consolidation Act 1999 and the Farmer must spend not less than 50% of their working time farming the land and retain ownership for a period of 5 years.
Consanguinity Relief continues to apply for famers in relation to deeds that are executed after the 1st January 2015 and before 1st January 2016 in respect of transfers of land by a person of any age. Accordingly the transferee will pay stamp duty at half the ad valorem rate. It therefore reduces the current 2% rate to 1%.
On or after the 1st January 2016 and before 1st January 2018, the relief will only be available to a Transferor under the age of 67 at the date of transfer. To qualify for this relief, the Transferee must from the date of the execution of the transfer/ conveyance farm the land for a period of not less than 6 years or lease it to an individual for a period of 6 years who will farm the land. The person who farms the land must be the holder of ( or within 4 years of the date of transfer become the holder of ) a farming qualification as set out in the Stamp Duties Acts and spend not less than 50% of their working time farming the land.
New CGT rate of 20% for entrepreneurs on the sale of whole or part of a business applying to capital gains of up to €1m.
The Group A Threshold for Capital Acquisition Tax will be increased from €225,000.00 to €280,000.00 with effect from 14th October 2015. The Group A threshold typically applies to gifts and inheritances between parents and their children.
The Group B Threshold which typically applies to gifts and inheritances between relations (Brother, Sister, Niece, Nephew, Grandchild) remains at €30,150.00.
The Group C Threshold which typically applies to all gifts and inheritances not covered by Group A or B remains at €15,075.00.