CIF – Budget 2020 Analysis

The Help to Buy scheme is extended in its present format until 31 December 2021. The HTB scheme is an income tax incentive measure designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home

  • The Living City Initiative is extended in its present format until 31 December 2022. The LCI is a scheme of property tax incentives aimed at the regeneration of certain ‘Special Regeneration Areas’ in the historic centres of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
  • There is an increase in Stamp Duty on Non-residential Property from 6% to 7.5% from Budget night.
  • The rate of stamp duty applicable to non-residential property transactions will be raised from 6% to 7.5% from Budget night. This will be subject to transitional arrangements whereby the existing 6% rate will apply to instruments executed before 1 January 2020 where a binding contract existed prior to Budget day (8th October 2019).
  • Consequential amendments will also be made to the legislation relating to the repayment of stamp duty where the land involved is subsequently used for residential development, so as to ensure that the rate of stamp duty chargeable after a full refund remains at 2%. • If there is a ‘No Deal’ Brexit €220 million will be made available immediately. Of this, €110 million will be targeted to help vulnerable but viable businesses.
  • There will be a €6 increase on the current rate of Carbon Tax applied per tonne of carbon dioxide emission. This will bring the rate from €20 per tonne to €26. The increase will be applied to petrol and auto diesel from midnight on 8th October and all other fuels on 1st May 2020.
  • The R&D tax credit is being amended for micro and small companies to increase the 25% R&D credit to 30%. See Slide 9.
  • A regionally balanced project pipeline is promised in order to respond to Brexit and wider challenges such as climate change and to bring greater economic resilience to Ireland’s regions by addressing current infrastructural deficits. Reference: Project Ireland 2040 and the NDP.