At a glance: Finance (Covid-19 and Miscellaneous Provisions) Bill 2021
The Finance (Covid-19 and Miscellaneous Provisions) Bill 2021 was published in late June. The provisions contained in the Bill provide for enhancements to existing COVID-19 supports, as well as the introduction of the Business Resumption Support Scheme, as announced in the Economic Recovery Plan. The Bill also gives statutory effect to the Financial Resolution passed by the Dáil in relation to the rate of stamp duty applying on the bulk purchase of housing. The Bill amends the provisions contained in the Financial Resolution to ensure some unintended consequences are avoided. It is expected that the Bill will pass through the Dáil before the summer recess in mid-July.
Finance (Covid-19 and Miscellaneous Provisions) Bill 2021 |
|
Employment Wage Subsidy Scheme (EWSS) |
Section 2 of the Bill amends section 28B of the Emergency Measures in the Public Interest (Covid-19) (No.2) Act 2020 to provide for the:
|
Covid Restrictions Support Scheme (CRSS) |
Sections 3 and 4 of the Bill amends section 484 and 485 TCA 1997 to provide for the extension of the specified period from 31 March 2021 to 30 September 2021. Section 4 amends section 485 TCA 2997 to provide for enhanced restart week payments, the level of which depends on the date the business reopens:
A business may qualify once for either the double restart week payment or triple restart week payment. |
Business Resumption Support Scheme (BRSS) |
Section 5 of the Bill provides for a new section, section 485A TCA 1997, which makes provision for the BRSS. Its key features are:
|
Reduced rate of VAT for the hospitality sector |
Section 6 of the Bill amends section 46 VATCA 2010 to extend the application of the 9% VAT rate on the supply of restaurant and catering services, guest and holiday accommodation and entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, amusement park and sporting facilities, and also to hairdressing and the sale of certain printed matter such as brochures, maps and programmes until 31 August 2022. |
Tax Debt Warehousing |
EWSS Warehousing Section 7 of the Bill provides for the warehousing of EWSS overpayments received by employers. This scheme will have three periods:
Where an employer fails to meet the conditions for debt warehousing the zero interest and reduced interest rates will no longer apply and the 8% rate will be re-imposed. Extension of the Debt Warehousing Scheme for TWSS, VAT, Employer PAYE liabilities, income tax 2019, preliminary tax 2020 and balancing payment for 2020 and preliminary tax for 2021 Sections 8, 9, 10, 11 and 12 of the Bill give effect to the extension of the Debt Warehousing Scheme announced as part of the Economic Recovery Plan. |
Stamp duty on acquisition of 10 or more residential properties |
Section 13 gives statutory effect to the Financial Resolution that passed on 19 May 2021. This section inserts section 31E in the SDCA 1999, which imposes stamp duty at a rate of 10 percent on acquisitions, on or after 20 May 2021, of certain residential properties (houses and duplexes but not apartments) where an aggregate of 10 or more units is acquired during a rolling 12-month period. Section 14 of the Bill introduces a provision that was not included in the Financial Resolution, and further amends the new section 31E SDCA 1999. Under the new provision, the acquisition of residential properties that are leased to the housing authority for certain social housing purposes is exempt from the new 10% rate. These are leases under the ‘Mortgage to Rent’ scheme, whereby properties that are surrendered to the financial institution holding the mortgage are sold to a private company in tandem with an agreement to then lease the property to a local authority, who in turn leases it to the existing occupants so that they can continue to live in the property. This exemption commences on the date the legislation is enacted. |