TAX BREAKS

Battery Court offers the discerning buyer a many unique benefits including

• A superb town address on Longford’s most prestigious road
• The highest quality build
• Section 23-type tax benefits*
• No stamp duty for owner occupiers **
  

Owner-occupied Dwellings (Rural Renewal Scheme)

• Any individual who buys or builds a new home in the designated area or who refurbishes an older dwelling can obtain tax relief under the scheme.
• For new dwellings, the relief is 5% of construction cost per year for 10 years – total 50%
• For refurbished dwellings, the relief is 10% of construction cost per year for 10 years – total 100%.
• No tax relief is available on site costs.
• To qualify, the floor area of the dwelling the floor area must be between 38 sq metres and 210 sq metres and the property must be situated within the designated area.
• The relief only applies where the owner-occupier first occupies the dwelling as their sole or main residence after the expenditure is incurred, and where the property is used solely as a dwelling.
• The relief no longer applies if any of these conditions are broken within the 10-year period. However, any relief given previously is not withdrawn.
• The relief is not available to any subsequent purchaser of the dwelling.
  
  

Example 1 - Peter - Bank Official

Peter is a PAYE taxpayer. He buys a house at Battery Road, Longford Town.

Peter can claim income tax relief on the €250,000 construction cost.

Peter’s annual income tax relief is 5% of €250,000 = €12,500.

This relief can be claimed against his Income Tax bill every year for 10 years.

If he pays tax at the 42% rate, Peter will save €5,250 in tax every year for 10 years.

This will save Peter a total of €52,500 in income tax over the ten years.

Example 2 – Jim Landlord

Jim Landlord buys a new house in Battery Court for letting purposes.

Jim can claim the full construction cost of €300,000 against his future rental income.

If Jim already earns €40,000 each year in rental income from any commercial or residential lets, and if he earns another €10,000 each year from renting the new house, the Rural Renewal relief will mean that he will earn all this income TAX-FREE for the next six years.

* The following examples illustrate the financial savings offered to all buyers at Battery Court

First time buyer and owner occupier buying a luxury 3 bedroom townhouse – click here
Non-first time buyer and owner occupier buying a luxury 3 bedroom townhouse – click here
Investor buying a luxury 3 bedroom townhouse – click here

* *Consult your financial advisor for details

Property Tax Incentives - Extension of 31 July 2006 deadline

The Minister is extending the completion date for projects from 31 July 2006 to 31 December 2006. Where at least 15 per cent of the relevant expenditure on the project has been incurred by 31 December 2006, the tax relief will apply to only 75% of the expenditure incurred in 2007 and to 50% for expenditure incurred up to 31 July 2008.

Extract from Finance Bill 2006