Investment Limited Partnership The 2013 Finance Act removes investment limited partnerships from the definition of collective investment undertaking. An investment limited partnership is not subject to tax in respect of its profits for investment as defined for investment to undertake. Its income and gains are treated as going to the individual unit holders in proportionate to the value of the benefits received. An investment limited […]
REITs The Finance Act 2013 provides for real estate investment trusts (REITs). They are companies with a diversified share ownership base whose shares can be purchased and sold. A REIT must be resident and incorporated in the state. The shares must be listed on a recognised stock exchange within the EU. It must not be a close company. Real estate investment trusts are exempted from […]
Mortgage Interest Relief Mortgage interest was available in respect of interest paid on a qualifying loan to an Irish financial institution, where the loan was taken out to purchase, repair or develop a residential house, which is the main or sole residence of the claimant, his spouse or former spouse or a dependent relative. It has now almost ceased to be available Prior to 2002 […]
Hotel and Holiday Cottages Capital allowances are granted for expenditure on hotels over 25 years at an annual 4% rate. Formerly, hotels qualified for accelerated capital allowances over seven years. This is now available, only provided that a certificate is given by the tourism authority (Tourism Ireland) in relation to the expenditure, certifying that it qualifies as a small or medium-size enterprise, in accordance with […]
Context Prior to the enactment of capitals gains tax legislation, a capital gain from land was entirely untaxed. Even after the introduction of capital gains tax, the CGT rate was significantly lower than the income tax rate. The rates have since converged, although the CGT rate remains below the higher rate of income tax and is not subject to the levies. There has long been […]
Income Tax on Rent Income tax is charged on rental income actually receivable in the calendar / tax year. Unlike the position with trading income, there is no reference year of assessment. There are no special rules relating to the commencement and cessation of rental income sources. Income from all Irish property lettings is added together and taxes as a separate category. If losses arise, […]
Capital Allowances Capital allowances on plant and machinery are allowed over eight years at 12.5% per annum. The write-downs on a straight-line basis. Where the plant and machinery/fixtures and fittings forms an integral part of the premises it may be treated as part of the building where the building qualifies for capital allowances. This implies that it is part of the fabric of the building […]