For all you investors:
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No time was wasted as from midnight last night Capital Gains Tax is up 3% to 25%.
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The level at which interest re-payments can be claimed against tax for residential rental properties will be reduced from 100% to 75%. This measure will apply to both new and existing mortgages. Although ... some can breath a sigh of relief as commercial properties will not be affected.
There's more...
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It's time to wave bye bye to the 'special' 20% rate that was applied to the trading profits from dealing in or developing residential development land, it's being abolished. The income will now be charged at the person's relevant marginal rates of income tax OR 25% rate of corporation tax. Ouch.
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Following on from this, where trading losses have occurred from dealing in or developing residential land, if trading profits had been made, they would have been eligible to be taxed at 20%. BUT if a claim to use those losses has not been made & received by the Revenue Commissioner before yesterday, the losses from today will only be relivable (on a value basis) up to a max of 20%. Where any such loss is terminal, the limit will be implement by "ring-fencing" the loss.
Just to note the above is only the bones of it, the full details of changes on income and loss measures will be contained in the Finance Bill.
For more information on the Budget check out the Budget Section of the Dept of Finance Website.
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