Finance Bill: Boost for inner cities and SMEs

THE Finance Bill was published today and includes benefits for SMEs and plans designed to regenerate parts of Ireland’s cities through tax incentives for the renovation of homes and shops.

Branded the ‘Living City’ initiative, due to the requirement to obtain EU state aid approval it will be subject to a commencement order.

The Bill contains some provisions to allow for a pilot scheme for regeneration in certain areas– Finance Minister Michael Noonan said in his Budget 2013 speech that he wanted to examine the expansion of regeneration projects.
In addition, benefits for SMEs include provisions for a reform of the three-year corporation tax relief for start-up firms as well as increasing the cash receipts basis threshold for VAT.

It also amends provisions under the R&D (research and development) tax credit scheme reducing from 75pc to 50pc the proportion of time that an employee must spend solely on these activities to qualify for the credit.

The Finance Bill brings into effect a range of Budget 2013 initiatives including the property tax.

By Ailish O’Hora