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Stamp Duty

The most notable change in Budget 2011 is the introduction of a flat 1% charge on most residential property transactions. A number of reliefs have also been abolished, and the Finance Act 2011 will put these on a statutory basis. These include the relief on the transfer of a site to a child to build a dwellinghouse, consanguinity relief for residential property transfers, the reliefs for owner-occupiers of new residential property, and the relief for first-time buyers of residential property.

As a result all house buyers will be paying a 1% on the value of the house (less VAT if a new build). For houses over €1m, the excess over €1m will be taxed at 2%.

Where however a purchaser had entered into a binding contract before Budget day and executes the instrument before 1 July 2011, no additional stamp duty will be payable.

Tax Relief on Rental Accommodation

While Budget 2011 provided for the restriction of “Section 23” type relief to rent received from the particular tax incentive property as opposed to rental income derived from other properties in the state as is currently the case, the Finance Bill has allowed for further time until the Impact Assessment referred to in the budget is complete. The Minister for Finance is empowered to make regulations allowing for the restriction of "section 23" relief 60 days following publication of the impact assessment. All affected parties are encouraged to make submission to the process.

Capital Acquisitions Tax

From Midnight on the 7^th December the following thresholds apply to gives and inheritances.

Amounts over and above this received by an individual will be subject to 25% tax.