1. STAMP DUTY- No changes to stamp duty
2. LOCAL PROPERTY TAX (LPT)
- A new local property tax to be introduced to replace the household charge with effect from the 1 July 2013 so that a half year charge will apply next year.
- The tax will apply at a rate of 0.18% on the market value of the property up to €1 million. A rate of 0.
- 25% applies to the value in excess of €1 million.
- From 1 January 2015 local authorities will have discretion to vary the LPT rates by +/-15% of the national central rate.
- Liable persons will self-assess the market value of their property. This initial valuation will be valid up to and including the year 2016.
- Property values will be divided into value bands (width €50,000) up to €1 million. For properties valued between €100,000 and €1million the tax will be calculated by applying the tax rate to the mid-point of the band. For properties valued at below €100,000 LPT is based on a value of €50,000.
- Limited exemptions will apply from the LPT
- The LPT will operate through a system of self-assessment and self-declaration by liable persons and can be paid by making a single payment in full or by instalments by deduction at source from salary or by direct debit.
- The Revenue Commissioners will have responsibility for all administration, collection, enforcement and audit aspects of LPT.CAPITAL ACQUISITIONS
3. TAX
- The current rate of 30% is being increased to 33%.
- The current tax-free group thresholds are being reduced by 10%.
- The increase in the CAT rate and the reduction in the group thresholds applies in respect of gifts or inheritances taken after 5 December 2012.For a full review of the budget, please contact us at william@clarkejeffers.com
