- The government plans to extend the VAT cut on apartments to include purpose-built student accommodation and possibly forward-funding deals.
- The current VAT reduction from 13% to 9% on new-build apartments does not apply to forward-funding arrangements, creating a price anomaly.
- Forward-funding deals, used by approved housing bodies and property funds, are increasingly common for acquiring apartments.
- Minister for Finance Paschal Donohoe signaled an amendment to clarify the 9% VAT rate for student accommodation and is considering including site and construction services.
- Addressing the VAT issue could impact the supply and pricing of new apartments.
Source: irishtimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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