{"id":106451,"date":"2025-10-07T08:28:08","date_gmt":"2025-10-07T08:28:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/106451\/"},"modified":"2025-10-07T08:28:08","modified_gmt":"2025-10-07T08:28:08","slug":"tax-cuts-for-developers-of-cost-rental-apartments-considered-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/106451\/","title":{"rendered":"Tax cuts for developers of cost-rental apartments considered \u2013 The Irish Times"},"content":{"rendered":"

The Coalition is to bet heavily on boosting apartment building in the budget<\/a> with a range of new measures, including a reduction in corporation tax on profits from the construction<\/a> of some apartments. <\/p>\n

The Irish Times has learned that alongside the well-flagged cut to VAT on new apartment sales, the Government was last night examining further measures. These include an exemption or reduction in corporation tax for companies building cost-rental properties, which are provided to tenants below market rents<\/a>.<\/p>\n

The VAT rate on new apartment sales will be cut to 9 per cent as part of a tax package that will also reduce VAT for food hospitality from next July, continue the renter\u2019s tax credit and extend the lower VAT rate of 9 per cent on utility bills.<\/p>\n

Mortgage interest tax relief will also be extended for two years, but reduced for the final year. People will be able to claim the existing level of \u20ac1,250 for 2025, but \u20ac625 for 2026.<\/p>\n

The living city initiative, which provides a tax incentive for refurbishing buildings in particular areas, will be extended to more large towns, while the Help to Buy scheme<\/a> will be continued. Revenue will collect the derelict property tax as part of a clampdown effort.<\/p>\n

Context<\/p>\n

How important is the budget?<\/p>\n

The \u20ac9.4 billion budget day package represents only a fraction of what the Government spends every year.<\/p>\n

This year, it will cost around \u20ac120 billion to run the country, divided between expenditure voted by the Oireachtas (\u20ac105 billion) and non-voted expenditure \u2013including interest on the national debt and Ireland\u2019s EU contributions.<\/p>\n

Voted expenditure is divided between public sector pay and pensions (\u20ac33 billion), capital spending (\u20ac15 billion) and goods, services and welfare payments of \u20ac58 billion.<\/p>\n

Among the departments, the biggest spenders are social welfare (\u20ac27 billion), health (\u20ac26 billion) and education (\u20ac12 billion).<\/p>\n

All this is paid for by tax and other charges for government services.<\/p>\n

The three big taxes are corporation tax (\u20ac34 billion), income tax (\u20ac36 billion) and VAT (\u20ac23 billion). Excise duty (\u20ac7 billion), stamp duty (\u20ac1.7 billion), capital gains tax (\u20ac1.6 billion) and other taxes make up the rest.<\/p>\n

Ireland is very unusual in the proportion of its revenue raised by corporation tax.<\/p>\n

The huge increase in government spending over the past decade \u2013 from about \u20ac75 billion in 2015 to \u20ac120 billion this year \u2013 has been underpinned by economic growth and by an unprecedented surge in corporation tax receipts.<\/p>\n

However, many households will face a squeeze with no income tax reductions and no electricity credits. Several departments were still locked in negotiations last night, with late approval confirmed for a \u20ac10 increase on weekly core welfare payments<\/a>.<\/p>\n

Child support payments will increase by \u20ac8 for children under 12 and \u20ac16 for those 12 and over. Back-to-school footwear and clothing allowances will be expanded to cater for two- and three-year-olds, while eligibility for the fuel allowance will be extended to those receiving the working family payment. <\/p>\n

Income thresholds for the working family payments will go up by \u20ac60. The income disregard for the Carer\u2019s Allowance<\/a> is also expected to increase by \u20ac375 for a single person, allowing earnings of up to \u20ac1,000 per week, and by \u20ac750 for a couple, allowing up to \u20ac2,000 in weekly earnings.<\/p>\n

The Department of Children and Disability was expected to get about \u20ac500 million more for the disability budget, with thousands more childcare<\/a> places to be funded. However, negotiations on any childcare fee package were still ongoing last night.<\/p>\n

The departments of health and of education agreed their budgets late on Monday evening, with an additional \u20ac1.5 billion for health to target regional access, safety, quality, prevention and productivity measures. There will be funding for 860 new special education teachers and a new DEIS+ scheme to address educational disadvantage.<\/p>\n

The basic income for the arts scheme is to be put on a permanent footing from next September, replacing the current pilot. The student contribution fee will reduce by \u20ac500. Research and Development tax incentives are also expected to increase, as is the minimum wage.<\/p>\n","protected":false},"excerpt":{"rendered":"The Coalition is to bet heavily on boosting apartment building in the budget with a range of new…\n","protected":false},"author":2,"featured_media":106452,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[10471,79,13264,3496,14085,18,19,17],"class_list":{"0":"post-106451","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-budget","9":"tag-business","10":"tag-department-of-education","11":"tag-department-of-health","12":"tag-department-of-children-equality-disability-integration-and-youth","13":"tag-eire","14":"tag-ie","15":"tag-ireland"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/106451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=106451"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/106451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/106452"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=106451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=106451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=106451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}