CGT relief on property acquired between 2011 and 2014 - why?

[barrabus]

Came across this while checking Revenue CGT rules and wondering what is the basis for this rather bizarre exemption and why 2011 - 2014 in particular?

Property acquired between 7 December 2011 and 31 December 2014

This page explains relief available for land or buildings acquired between 7 December 2011 and 31 December 2014

www.revenue.ie

 

[ClubMan]

Came across this while checking Revenue CGT rules and wondering what is the basis for this rather bizarre exemption and why 2011 - 2014 in particular?

It was designed to encourage people back into the property rental sector post global financial crisis.

Capital Gains Tax Relief Update - OFX

CGT Relief Update

www.ofx.ie

The purpose behind the relief was to encourage a then stagnant property market which had a significant oversupply of property and directed that any gain for that 7 year period not be subject to Capital Gains Tax.

 

[Aladdin]

It was designed to encourage people back into the property rental sector post global financial crisis.

Wow! Times really have changed. ‍

 

[Villaines]

S604A. A very blatant example of really bad fiscal policy. Presumably to avoid state aid rules, they had to allow any property purchased in the EU/EEA by Irish resident and domiciled individuals (which would also be in scope of Irish CGT) to qualify for the relief as well.

Ostensibly to encourage property investment. But then why did it apply to the purchase of existing property? Did it help NAMA get better prices for the assets it sold to foreign investors? Hard to be sure, maybe something in that.

 

[TomEdison]

My guess is that it was mainly intended to incentivise investment in existing property, so as to help prices to recover, which in turn would help people in negative equity.

 

[Bronte]

Came across this while checking Revenue CGT rules and wondering what is the basis for this rather bizarre exemption and why 2011 - 2014 in particular?

Not bizzare, if you have been around long enough you will see a constant stream of incentives and disincentives over the decades. Basically non stop panicked interventions by governments who apparently have the best “advisors” telling them what to do.

Other examples were the money for electricity bills a couple of years ago, I made money out of that as I’d empty flats and I didn’t need the money. It should have been targeted at the likes of poor pensioners…