Tuesday, October 08, 2019
Cushman & Wakefield welcomed some of the policy changes announced today in Budget 2020. According to Aidan Gavin, Managing Director, Cushman & Wakefield, “Budget 2020 was a relatively prudent one given the geo-political uncertainty and the risks surrounding a no-deal Brexit, however the increase in stamp duty applicable to commercial property is a clear attempt at broadening the tax base, which has the potential to damage both investor sentiment and therefore capital flows to Ireland.”
The changes in stamp duty comes on the back of the increase in Budget 2018, when stamp duty for commercial property was raised from 2% to 6%, together with changes to the S110 structures in 2016.
Commenting on the increase in stamp duty, Aidan Gavin, Managing Director, “This increase in stamp duty is clearly the Government snatching low hanging fruit to raise revenue in the short term, however it does have the potential to damage our reputation internationally. Investors look for certainty in terms of Government policy. If the Government continually change the goalposts it will damage investor sentiment. The future stability of the commercial property market is dependent on stable capital flows together with strong FDI investment, we need to certainty not constant policy changes. The unintended consequences of this change will be a reduction in value for personal and government backed pensions that are invested in commercial assets”