Getting ready for the NAMA tornado

THE proposed windfall tax of 80%, which was included as part of the NAMA legislation, has created its own mini tornado following a clarification when it passed through the Senate.

First to make the hue and cry were the farmers, who saw the increase from 20% capital gains to 80% on zoned land as a cap on their equity.

The issue of Compulsory Purchase Orders and the sale of residential housing sites were used to highlight what the IFA describes as ‘crude legislation’ which, it says, will be counterproductive and yield little tax revenue. Instead, It is proposing a scaled rate whereby the 80% CGT would only apply to gains over €5 million.