Failure to bring clarity to tax structures will see loss of Brexit investment, expert warns Government
The Government has been called upon to provide clarity in the upcoming Finance Bill on the changes it intends to introduce to tax structures such as Qualifying Investor Alternative Investments Funds (QIAIFs) and Irish Collective Asset-Management Vehicles (ICAVs), or run the risk of losing out in the competition to attract companies seeking to relocate from the UK in the wake of Brexit.
Director of Research at Savills Ireland, Dr John McCartney said there was already uncertainty amongst overseas investors on foot of changes to Ireland’s tax regime which had been mooted in recent weeks, and it was important that this issue would now be addressed.
He said: “Tax structures such as QIAIFs and ICAVs have been promoted by Government as a vehicle to attract overseas investment to Ireland – and this has been successful. Mooted changes to these structures prior to today’s announcement have introduced an element of uncertainty and a number of property deals have stalled as a result”.
“Now that Minister Noonan has announced his intention to introduce amendments to the legislation governing these structures it is important that the forthcoming Finance Bill brings clarity on how these changes will affect investment in Irish commercial property. Brexit has the potential to boost commercial property investment in Ireland, however we can only take advantage of this opportunity if we have a tax structure that can compete with other European cities and attract investment,” Dr McCartney added.