Menu
25/01/2010
Developers' Tax Break 'Costly'
Figures just published have revealed that a special lower rate of tax made available to property developers has cost the Dublin Exchequer €800m.
The tax rate was introduced to free up land for development in 2000 - and was scrapped in January 2009.
It worked on account of land being sold for development purposes which was then liable for income tax, but not for capital gains tax.
Figures from the Revenue Commissioners now show the tax was used in 10,000 cases between 2000 and 2007.
Accountancy experts estimate the cost to the Exchequer was €800m over that period.
This 'Special Incentive Tax Rate' was introduced to encourage the release of land for residential development.
The special incentive rate was 20%, as opposed to the higher rate of tax of 42% which was later reduced to 41%.
The incentive meant that money from the sale of land was not liable to the health levy or PRSI.
The amount of revenue forgone by the Exchequer is significant considering urban and rural renewal tax incentives, which attracted considerable criticism, cost the taxman €2bn.
(BMcC/GK)
The tax rate was introduced to free up land for development in 2000 - and was scrapped in January 2009.
It worked on account of land being sold for development purposes which was then liable for income tax, but not for capital gains tax.
Figures from the Revenue Commissioners now show the tax was used in 10,000 cases between 2000 and 2007.
Accountancy experts estimate the cost to the Exchequer was €800m over that period.
This 'Special Incentive Tax Rate' was introduced to encourage the release of land for residential development.
The special incentive rate was 20%, as opposed to the higher rate of tax of 42% which was later reduced to 41%.
The incentive meant that money from the sale of land was not liable to the health levy or PRSI.
The amount of revenue forgone by the Exchequer is significant considering urban and rural renewal tax incentives, which attracted considerable criticism, cost the taxman €2bn.
(BMcC/GK)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
22 March 2013
Budget R&D Tax Incentives Welcomed
Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement. Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
Budget R&D Tax Incentives Welcomed
Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement. Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
26 October 2021
Baker Tilly Moore Announces Two Key Appointments
Leading accountancy and advisory firm Baker Tilly Mooney Moore has made two appointments to the Taxation Department amid a period of sustained growth and development. Eugene Moore joins the firm as Tax Manager, while Naomh McGrann has taken on the role of Tax Technician.
Baker Tilly Moore Announces Two Key Appointments
Leading accountancy and advisory firm Baker Tilly Mooney Moore has made two appointments to the Taxation Department amid a period of sustained growth and development. Eugene Moore joins the firm as Tax Manager, while Naomh McGrann has taken on the role of Tax Technician.
04 May 2011
Dáil Probes EU Plans For Common Tax System
An interim Dáil Committee will meet with officials from the Department of Finance today, to consider whether a new EU proposal for a consolidated system of calculating the tax base of businesses operating in the EU complies with the principle of subsidiarity. The meeting will take place at 2.30pm in Leinster House.
Dáil Probes EU Plans For Common Tax System
An interim Dáil Committee will meet with officials from the Department of Finance today, to consider whether a new EU proposal for a consolidated system of calculating the tax base of businesses operating in the EU complies with the principle of subsidiarity. The meeting will take place at 2.30pm in Leinster House.
01 March 2006
Employers reminded to stop paying Working Tax Credit
HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month. Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.
Employers reminded to stop paying Working Tax Credit
HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month. Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.
04 June 2004
Businesses welcome R&D Tax Credit guideline clarification
Business has welcomed clarified guidelines on research and development (R&D) tax credits, but there is still room for improvement if confidence in the process is to remain, says PricewaterhouseCoopers (PwC).
Businesses welcome R&D Tax Credit guideline clarification
Business has welcomed clarified guidelines on research and development (R&D) tax credits, but there is still room for improvement if confidence in the process is to remain, says PricewaterhouseCoopers (PwC).
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
