Tuesday 17 October 2017

Government to scrap tax break for property investors in Budget

Finance Minister Michael Noonan
Finance Minister Michael Noonan

The Government will scrap a tax break for property investors in the upcoming Budget, ending a special deal that was aimed at encouraging buyers.

The capital gains tax exemption was introduced in Budget 2012 to encourage investment in property when the market was at it weakest. Under the tax break, anyone buying commercial property and holding it for seven years was exempted from the standard 33pc capital tax gain charged on profits.

The tax break was not intended as a long term measure and was controversial because it was seen to encourage money into property potentially at the expense of other sectors.

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