News Archive

Budget 2017

The Minister for Finance, Mr. Michael Noonan, delivered the Budget for 2017 yesterday, October 11th 2016, and the following is of note:

Capital Acquisitions Tax (Gift/Inheritance Tax)

The rate of Capital Acquisitions Tax remains unchanged at 33%, however the Group Tax Free Thresholds for gifts/inheritances taken on or after October 12th 2016 have increased:

  • Threshold A (gifts/inheritances between parent and child) increased from €280,000 to €310,000.
  • Threshold B (gifts/inheritances from brother/sister, aunt/uncle, grandparent) increased from €30,150 to €32,500.
  • Threshold C (gifts/inheritances from others) increased from €15,075 to €16,250.

Capital Gains Tax

The standard rate of Capital Gains Tax remains unchanged at 33%. The reduced rate of Capital Gains Tax for Entrepreneurs disposing of assets (20%) is being further reduced to 10%, subject (as before) to a lifetime limit of €1 million on chargeable gains.

Farm Restructuring Relief, available to farmers when sale and purchase of farm land occurs within 24 months of the other, has been extended to the end of 2019.

Stamp Duty

The Stamp Duty rates on property transfers have remained unchanged i.e. for Residential Property the rate is 1% on transactions up to €1,000,000 and 2% thereafter, and for Non-Residential Property the rate is 2%.

Help to Buy Scheme

This new scheme is aimed at first time buyers of new properties for their own occupation. It will provide for a rebate of income tax paid by the buyer over the previous four years. The maximum relief claimable is 5% of the purchase price up to a maximum purchase price of €400,000, and the relief will not be available on property purchases in excess of €600,000. Under the rules, applicants must take out mortgages of at least 80% of the house price.  The scheme will be available to those who have signed contracts to purchase their home on or after July 19th, 2016. In the case of a self-build, applicants who drew down the first tranche of their mortgage on or after that date will also be eligible. The scheme will be run until the end of 2019.

Cashin & Associates Solicitors,
3 Francis Street, Ennis, Co. Clare, Ireland
Dublin Office: 64 Francis Street, Dublin 8
T: 00 353 65 6840060  F: 00 353 65 6840034