Axe falls on stamp duty and capital gains

RELIEF for stamp duty and capital gains tax is set to be abolished or significantly reduced under Government plans to raise funds.

The move which will net an extra €145m in funds for the Government.

According to the National Recovery Plan, the end to exemptions in property is to ensure “there is an adequate base for these taxes and that all of society makes a fair contribution to the correction of the public finances”.

The proposed changes to capital gains tax (CGT) over the next four years will see the base costs for the charge widened and broadened, the four year plan states. More information on this tax change is expected in next month’s budget.

The current rate of CGT stands at 25% but over the coming years the rate will be staggered according to an individual’s criteria.

There will be differing rates for different levels of gains, the plan states.

Other property-related measures raised in the plan for the coming years include proposed moves to lower office rents in the public and private sectors.

The Office of Public Works would lead efforts to cut office rents by up to 15%, the plan said.

The Government also said it would investigate the possibility of start-up businesses or entrepreneurs using vacant or unused public properties as “incubation centres” for work in the hope of creating jobs.