Ireland has a two-step budgetary process. The first is the
announcement by the Minister for Finance of financial plans for the
coming year, which he did yesterday. The second is the enactment of
these measures in law which takes place early in the New Year.
Sometimes, what is announced in the Budget is changed in the
Finance Act and new measures can be introduced at that stage as
well.
In his Budget speech, the Minister commented that both the
residential and commercial property markets are showing signs of
stabilisation in 2012. He confirmed that the reduced rates of stamp
duty which he introduced in the 2012 Budget and the 7 year Capital
Gains Tax holiday on property acquired before the end of 2013 will
continue. While the major piece of property related news is the
introduction of a residential property tax, the Minister was able
to announce some new initiatives to encourage activity in the
property market.
