The Irish Government published Brexit legislation last month as part of its continued contingency plans for a no deal Brexit. Part 6 of the Bill provides for tax provisions covering income tax, capital tax, corporation tax, stamp duty and VAT legislation aimed at providing continuity for businesses and citizens in relation to their current access to certain taxation measures including reliefs and allowances, and the retention of a number of anti-avoidance provisions in the event that the UK is no longer a member of the EU/EEA.

As expected The Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019 includes amendments to income tax, VAT, capital taxes, corporation tax and stamp duty legislation with the amendments mainly relating to including the UK in definitions in the event that they no longer remain an EEA/EU member state.

The reliefs amended include KEEP, EIIS, artist income exemption, mortgage interest relief, relief for third level college fees, corporation tax charges on income, company reconstructions and amalgamations, group loss relief, relief for start-up companies, R&D tax credit relief and stamp duty relief on mergers of companies, among a list of others.

The legislation also includes provisions to delay the payment of import VAT on imports from the UK; provisions that the Institute has been campaigning for during the past two years.

Adding the UK to the territorial requirements will maintain the status quo in the immediate future and allows time to examine any potential impact on bone-fide business transactions. The taxation amendments will come into operation by ministerial order by the Minister for Finance.