Our submissions on the Finance Bill as initiated have contributed to substantial changes at Committee State in the tax treatment of unitised investments.

The main issue on which CCAB-I focussed was the proposed new regime for the taxation of unitised investments which would increase the tax rate on such investments from 23% to 43%. Committee Stage saw the introduction of more defined rules concerning the forms of investment subject to the higher rate. Changes were also made to ensure that the new regime would not apply to most types of existing investment vehicle, but only to new investments established after February 2007.

Other changes at Committee Stage, which commenced on 20 February, to the Finance Bill as initiated include:

• Additional conditions for Group Preliminary tax payment
• Transfer of Business Assets
• Relief for clearing houses
• CAT dwelling house exemption

Among some new provisions are:

• Exemptions in respect of certain expense payments;
• Capital Allowances for qualifying residential units associated with registered nursing homes;
• Relief from double taxation;
• Implementing the change in the threshold for the cash receipts basis for accounting for VAT;
• Stamp duty anti-avoidance.

During the Committee Stage debate on the proposed amendments, the Minister for Finance indicated that he may revisit the de minimis thresholds for medical expenses claims at Report Stage.

The actual Committee Stage amendments are available at http://www.oireachtas.ie/viewdoc.asp?DocID=6859. Our Finance Bill submission has been reproduced in Section 2.01.

ICAI Commentary on Committee Stage Amendments has been reproduced at Section 2.02.