The Report on the Commission on Taxation, published 7 September 2009, provides an analysis of the current taxation system in Ireland and gives extensive recommendations which, if implemented, would change the Irish tax system significantly. While these recommendations are not necessarily going to be taken on in full or at all in upcoming legislation, the mention by the Commission of particular taxes, exemptions and reliefs would indicate a strong possibility that the areas would be considered in later Finance Acts. Areas of interest in capital taxes include the following:-
- the reintroduction of indexation relief for CGT
- the reintroduction of rollover relief on CPOs of farmland
- a cap of €3m on retirement relief for CGT to family members
- the reduction of agricultural and business property relief from CAT from 90% to 75% with a cap of €3m on the total relief
- a new annual residential property tax on the owner of the property by reference to open market value. The Commission recommends the zero rating of stamp duty for principal private residences and that the levy on second houses would be removed.
- significant changes to the residence rules including the introduction of tests such as the centre of vital economic interests (as opposed to domicile)
- the zero rating of stamp duty on shares and the abolition of the stamp duty on ATM and credit cards
- the abolition of the relief for expenditure on heritage buildings and gardens.
