Proposed tax on property expenditure to be deferred

TOUGH measures aimed at taxing property-related expenditure will now be deferred, Minister for Finance Brian Lenihan said yesterday.

The long-awaited Finance Bill yesterday outlined how it would give effect to plans set out in the budget, including the phasing out of tax breaks for hotels, section 23 homes, sports facilities and private hospitals, among others.

But Minister Lenihan said the possible impact of the measures would first need to be examined in an economic impact assessment. Even then, the measures could only be introduced 60 days after the publication of that assessment and then take effect in the following tax year.