1. Stamp Duty on Commercial Property
Following Budget 2009, the current Stamp Duty applicable to non-residential property is being changed.
The top rate of duty is being reduced from 9% to 6% and the new rates are:
Aggregate Consideration Rate of Duty
Up to €10,000 Exempt
€10,001 to €20,000 1%
€20,001 to €30,000 2%
€30,001 to €40,000 3%
€40,001 to €70,000 4%
€70,001 to €80,000 5%
Over €80,000 6%
2. Mortgage Interest Relief
The current rate of mortgage interest relief is being increased from 1 January 2009 for first-time buyers from 20% to 25% in year 1 and year 2 and to 22.5% in years 3, 4 and 5. The additional relief will be available to new first-time buyers and first-time buyers who have bought a house in the last 4 years.
The rate of mortgage interest relief for non-first-time buyers is being reduced from 20% to 15% from 1 January 2009.
3. Change in Rate of Capital Gains Tax
The rate of capital gains tax is being increased to 22% from 20%.
4. Charge on non-principal private residences
The Government will increase revenue base of local authorities. This will be achieved by the introduction of a charge on all non-principal private residences. The charge will be levied and collected by local authorities. The new charge will be set at €200 per dwelling, and will come into effect in 2009. It will be payable by the owners of private rented accommodation, holiday homes and other non-principal residences but will not be applied to new dwellings as yet unsold.
Budget 2009
