A range of new measures have been introduced in the preliminary list of measures for the Finance Bill, many designed to streamline tax administration and reduce the regulatory burden.
Measures to set up a tax-designated town renewal scheme, the joint assessment of spouses and further changes to capital acquisitions tax are the most significant new measures not already announced on Budget day.
The preliminary list does not include several items likely to find their way into the final Bill, which will be published on February 10th. These include implementation of the recommendations of the Committee of Public Accounts' subcommittee report into DIRT payments by banks. The Department of Finance is also still looking at measures on the workings of the life assurance industry.
The preliminary list also sets out the details of implementing the income tax and other tax measures set out in the Budget. It includes the additional £3,000 tax allowance for stay-at-home spouses announced shortly after the Budget.
The new measures not already announced in the Budget are:
Implementation of tax relief for pay restructuring (where pay levels are cut by 10 per cent or more).
The opening up of access to heritage houses, with houses that benefit from relief having to open on at least 10 weekend days from May to September. The Revenue Commissioners and Bord Failte are compiling a list of such houses to encourage more visitors.
Provisions relating to urban and rural renewal reliefs, which are designed to implement the new terms agreed with the European Commission last year.
The bringing forward of the termination date for signing leases for double rent relief in the Temple Bar area, from April 5th, 2001, to December 31st, 1999.
Provisions to implement the Commission decision on double rent relief in the Custom House Docks area.
The introduction of a town renewal scheme offering tax relief for the development of towns with a population between 500 and 6,000.
The joint assessment of spouses is to be made gender neutral so that the Revenue will be able to pursue wives as well as husbands in certain cases. The purpose of this change, according to the Department, is to allow greater flexibility to the Criminal Assets Bureau.
Changes in the calculation basis of Capital Acquisitions Tax (CAT). All the various types of gifts will now be assessed separately. Thus, an inheritance from a parent will not count towards the £30,000 relief for an inheritance from an aunt or uncle, and vice versa. This will reduce the impact of CAT on inheritances taken from close relatives and strangers.
Changes to CAT on heritage items. These will ensure that a loophole that only allowed clawback for one year will be extended.
An increase to £30,000 of the threshold for clearance certificates for residential property tax when selling a home.
Simplification of the dividend withholding system.
Simplification of tax-efficient donations to universities. Each university will have its own fund which will allow tax relief for donors. The projects will be able to be approved by the Higher Education Authority as the money is spent rather than in advance. The minimum level of contributing will be reduced from £1,000 to £250 a year.
An increase, from £150,000 to £300,000, in the threshold for withholding tax on purchasers of land, mineral rights and so on.
The issue of a new combined car registration and licensing document to simplify car purchases.
National cultural institutions will now have to pay £200 a year for liquor licences.
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