Chartered Accountants Ireland has responded through CCAB-I to the Department of Finance's consultation on Legacy Property-Based Tax Reliefs.

In the submission we highlight that:

• Legacy property reliefs were only one aspect of a range of reliefs and incentives which contributed to the influence of the construction sector.
• For there to be any tax yield from curtailing property reliefs or non-application, there must be economic activity.
• The change in tax policy direction on Property Relief harms our credibility on tax policy generally.
• The high earners restriction has succeeded in ensuring that any taxpayer with passive rental income must pay a minimum of 30% income tax (plus PRSI and Universal Social Charge – 14%) where capital allowances are being claimed.
• By using the mechanism of the high earners restriction, an effective restriction of the use of property reliefs becomes possible.

The full text of the submission is published on our website www.charteredaccountants.ie