Comment from Padraic Whelan, partner, Deloitte on Budget 2012
Real Estate - Significant changes
The Budget contains a number of very positive measures which should certainly help lift transactional activity in the Market.
The reduction of Stamp Duty on Commercial Property acquisitions from 6% to 2% is most welcome. In addition , any properties acquired from tomorrow and before the end of 2013, will be free of capital gains tax, on disposal , as long as such properties are held for seven years .
The Minister has also decided not to proceed with proposed changes to legislation affecting commercial property leases entered into prior to 28th February 2010 ,in terms of interfering with upward only rent reviews . There is a role for NAMA , who have issued a guidance document , which will be of interest to tenants of such properties , who are struggling to pay rents .
In terms of Property reliefs , the Minister will seek to protect “smaller Investors” ( broadly those with a Gross Income of less than €100,000) from the changes proposed by the previous government in terms of restrictions on the use of such reliefs and measures will be set out in the Finance Bill .
Broadly , the proposed changes are very welcome and should help attract a level of Foreign Investment into Property located particularly in our major cities.