HOMEOWNERS, motorists and developers will all be waiting anxiously for the publication of the Finance Bill as it is expected to contain details of measures affecting these sectors.
Although mentioned yesterday, Finance Minister Brian Lenihan said the bill will contain further details of a stamp duty “trade-in” scheme and changes to the way car dealers can account for VAT on second-hand cars. It is expected the bill will be published by the end of May.
The Finance Minister said he is establishing the stamp duty scheme to address the overhang of unsold properties. He said the scheme will enable a person purchasing a new house or apartment to trade in their previous property with the seller, who will not be liable to stamp duty until they sell the traded-in property on at a later stage.
It is envisaged the scheme will apply from the date of publication of the bill to December 31, 2010.
Mr Lenihan also said the bill will contain further details on plans for the abolition of the special 20% rate applied to the trading profits from dealing in or developing residential development land. Details of a new tax relief on capital expenditure incurred in the acquisition of intellectual property and the termination of capital allowances scheme for private hospitals and nursing homes, will also be laid out in the bill.
Deloitte said the introduction of a new tax relief on capital expenditure incurred in the acquisition of intellectual property will act as a catalyst to attract further inward investment into Ireland and ultimately lead to the creation of new jobs.
“We welcome the move as it will serve to not only retain existing operations but also encourage others currently considering locating in Ireland to actually go and do so,” said Deloitte tax expert Padraig Cronin.
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