Finance Bill 2018
Yesterday, the 18th of October, the Irish Government published the Finance Bill 2018, which will give effect to the measures announced in Budget 2019.
The bill also includes new measures that weren’t announced by Minister for Finance last week. Here are some of those new measures:
1) Capital Gains Tax on Trusts
Trusts moving to another country will be able to pay Capital Gains Tax through instalments over the following five years, rather than being liable to pay the full amount immediately.
2) PAYE Modernisation Technical Changes
There will be several technical changes made to allow for the rollout of PAYE modernisation. (You can watch our webinar on PAYE Modernisation here)
3) Capital Gains Tax relief
The rules which provide Capital Gains Tax relief to the transfer of land by a parent to a child for the construction of a home will be changed. This will be amended so that the child and their spouse or civil partner will be able to benefit from the relief.
4) Capital Acquisitions Tax Loophole
A loophole that allowed individuals to avoid Capital Acquisitions Tax on an inherited property, by transferring their existing property to a discretionary trust, is to be closed.
5) VRT on Leased/Hired Cars
Vehicle Registration Tax relief will not be available to leased or hired cars. Leased cars that are temporarily based in Ireland will be charged VRT on a pro-rata basis.
6) Minimum Rental Period
There will be a minimum rental period of 29 days for those claiming the Rent a Room relief. This will ensure it is not used for AirBnB properties – although there are provisions to ensure that respite, student digs and accommodation for foreign language students are still eligible.
7) ‘Co2 Emissions’ Definition
The definition of ‘Co2 emissions’ will be changed to bring the country into line with the new Worldwide Harmonised Light Vehicle Test Procedure. This is the new emissions standards that cars will be tested on.
8) Changes to Farmer-related Supports
Changes are being made to some farmer-related supports to ensure they comply with European State Aid rules. This largely impacts the Young Trained Farmers scheme, and will mean that a business plan has to be submitted by those seeking a retrospective refund of Stamp Duty.
9) Defence Force Member Benefit in Kind
Member of the Defence Force who receive medical treatment or accommodation as part of their employment will not be liable to pay Benefit in Kind.