Budget-2012 - Rental Property Owners
Rental property owners will be feeling the pinch in the wake of Budget 2012. A series of new measures will affect the amount of tax buy to let investors both small and large pay.
PRSI
The major change for anyone renting out a property is the extension of PRSI to cover income from rental income. This will have an obvious impact on many people, particularly those with rental properties who have been hit in the last four years with a lowering of interest deductions to 75%, the introduction of the non-principal private residence charge (NPPR), the Residential Tenancies Board fee and BER certificates. The only good news here is that PRSI will not be applied on rental income until 2013.
Household tax
In advance of a full property tax being brought in the government has decided to levy a €100 household charge on all privately owned properties in the country. The only time the levy won’t apply is in cases where the home is in an unfinished housing estate. Payment wise, arrangements can be made for the charge to be paid in instalments.
Property reliefs
Investors with income over €100,000 will now be liable for a 5% surcharge on their property reliefs.
