Budget 2012: Government acts to stimulate the property market
- Mortgage Interest Relief (TRS) scheme extended slightly and rate increased to 25% for first-time buyers who buy in 2012, other residential buyers will receive 15% mortgage interest relief
- Increased mortgage interest relief of 30%, for homeowners who bought between 2004 – 2008
- Its a mixed bag for investors, with tax incentive properties (s. 23 and s. 50) preserved for investors with an annual income of less than €100,000 – investors receiving an income greater than €100,000 willl be subject to a surcharge of 5%.
- There will also be an increase in Capital Gains Tax from 25% to 30%
- No residential Stamp Duty increases (this year…)
- For commercial investors – Stamp duty decreases to a flat rate of 2%
- An exemption from CGT for commercial property purchased throughout 2012 and 2013 provided same is held for a period of at least 7 years
- On the down side, a household charge of €100 has been introduced and will apply from January 2012, with some exemptions.