Readers will recall that measures aimed at abolishing property-based legacy reliefs on a phased basis, with all such reliefs terminating after 2014, were first announced in Budget 2011. It was also proposed that an economic impact assessment would be undertaken into the effects of the phased abolition of the property-based measures and the “guillotine” provision. The public consultation document, as part of this economic impact assessment, was launched by the Department of Finance on 23 June.

Section 23 and section 24 Finance Act 2011 provided a legislative basis for initially restricting the use of the legacy property reliefs and ultimately ‘guillotining’ all outstanding reliefs. The Act also provides that an economic impact assessment will be carried out into the effects of tax relief restrictions in advance of implementation of those measures. The consultation document published by the Department of Finance is part of this economic impact assessment.

The consultation document sets out full details of the proposed changes, an analysis of the impact and economic effects of the proposals and a list of the consultation questions to be considered when formulating a response.

Full details on how to make a submission are set out in the document and the closing date for responses is 29 July 2011.

Chartered Accountants Ireland as part of CCAB-I will make a submission in response to the consultation document. Members are invited to send their comments to the Tax Department.

The consultation document is available at http://taxpolicy.gov.ie/consultations/consultation-on-legacy-property-based-tax-reliefs/