In this Issue
Budget 2011
Income Tax Cut-off Points and Credits
Universal Social Charge
Reliefs Abolished with effect from 1 January 2011
Income Tax: Restriction of Reliefs
PRSI Changes
Tax on Savings
Corporation Tax
Property Incentive Reliefs
Capital Acquisitions Tax (CAT) & Capital Gains Tax (CGT)
Business Expansion Scheme
PM Services
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Property Incentive Reliefs

Section 23 type relief
  • From 1 January 2011 Section 23 type relief will be restricted to income from that Section 23 property. Currently this relief can be set against all rental income
  • At the end of a 10 year holding period any unused relief will be lost
  • If the property is sold within this period the new owner will not get Section 23 relief and the seller continues to be subject to a clawback of the relief already given
  • For properties which are not yet sold in respect of which relief has not yet been claimed the 10 year period will be deemed to commence on 30 June 2011Owner occupiers are not affected by these changes.    

Capital Allowances  
 The following restrictions will apply to passive investors in capital allowance schemes:
  • With effect from 7 December 2010 any unused capital allowances carried forward beyond the relevant 7 year or 10 year period will be lost
  • From 2011 capital allowances will be ring-fenced against income from the property in respect of which the allowances arose with no opportunity to offset against other income
  • Schemes with a period over 10 years will be truncated to 7 years from when allowances were first made
  • All unused capital allowances arising to passive investors and Section 23 type reliefs arising after or carried forward from 2014 will be lost
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