Finance Bill 2018

Earlier today, the Department of Finance released the first draft of Finance Bill 2018. This Bill sets out the proposed legislative changes required in order to implement the Budget Day announcements of 9 October. In addition to what was announced in the Budget, the Bill also proposes to introduce a number of new measures.

The key measures included in the Finance Bill are:

• The replacement of the existing exit tax regime with a new EU Anti-Tax Avoidance Directive (ATAD) compliant exit tax regime with effect from 10 October 2018;
• The introduction of Controlled Foreign Company regime;
• Modest reductions in the personal tax burden through the increase in standard rate bands, reduction in the 4.75% USC rate, and increases in the Home Carer and Earned Income tax credits, as announced on Budget Day;
• Changes to Employment and Investment Incentive (EII), most notably to move the system away from the current pre-clearance system, to a self-certification system;
• The introduction of a new Start-up Capital Incentive for investors in early stage startup ventures;
• Restoration of full relief for mortgage interest for landlords of residential rental properties, as announced on Budget Day; and
• Changes to Rent-a-Room Relief to disqualify lettings of less than 28 days.    

For further information on the above, and other measures contained in the Finance Bill, please read our Guide to the Finance Bill:

BDO Guide to Finance Bill 2018

If you have any questions on what the Finance Bill means for you or your business, please contact a member of the BDO Tax Team.

Finance Bill Stages

The Department of Finance have also released the expected timetable for the various stages of the Finance Bill. Key dates are as follows:

It is expected that Finance Act 2018 will be signed into law before the end of 2018.

Department of Finance Documents

• Finance Bill 2018
• Finance Bill 2018 –  Press Release 
• Finance Bill 2018 – Explanatory memo
• Finance Bill 2018 – Appendix: List of Items
• Finance Bill 2018 – Notes for Editors