As predicted it was a vicious budget that is draining every one of us for every last drop.
Anyway, if you still have a few bob spare and you’re still thinking of extending or improving your property now is the best time to do it:
The new property tax applies to dwellings at a standard rate of 0.18% valued at under €1m and a so-called mansion tax of an additional 0.25% applying to any portion of the value that exceeds €1m.
The tax will be payable on the basis of the market value of the property as assessed by the owner. The Revenue Commissioners in order to aid owners will provide valuation guidance to which owners can refer. Alternatively, owners will be free to use a competent valuer.
The initial valuation will be valid up to and including 2016, which will provide three and a half years of certainty for property owners.
What this means is that if you do any improvements that will increase the value of the property you will only pay tax at the initial valuation.
So if you’re thinking about doing an extension (and you still have some money spare after the budget) then now is the best time to get started as your property tax will be frozen at the initial valuation rather than the new valuation in 3 1/2 years time.
ps And if you’re thinking about appointing an architect for these improvements, then ahem, cough, cough (CONTACT ME)