It is firmly believed that the rate of both Capital Gains Tax (“CGT”) and Capital Acquisitions Tax (“CAT”) will be increased in Budget 2012, perhaps to as much as 35% from the existing rate of 25%. Many commentators believe that ultimately these taxes may even reach 40% in due course.

It is also strongly speculated that the CAT thresholds may also be reduced which essentially lowers the level of gifts or bequests that a person can receive on a tax free basis.

Anyone contemplating or in the process of selling or transferring assets which may be effected by CGT or CAT should give consideration to accelerating the process to completion before December 6^th to avail of the current rates of tax, before the increases apply.

Such management companies are made up of the owners of the units or apartments within the developments and it is through these companies that the owners insure, maintain and repair the common areas within the development.

The Act also contains provisions on how the management companies are to be operated, including rules relating to the holding of annual general meetings, the calculation of service charges and the establishment of sinking funds for future repair works within the development.

Anyone seeking more information relating to owner management companies or the Multi-unit Development Act, 2011 should contact Martin Archer or Ken Hegarty.

While  Chapter 3 of the Land and Conveyancing Law Reform Act, 2009 introduced similar provisos to those repealed in the 1964 Act, these only relate to mortgages entered into after the 1st of December 2009.

This provides breathing space for many distressed borrowers, at least until new legislation is enacted to remedy this lacuna.

A copy of this landmark Judgment can be revised at:

http://www.newbeginning.ie/wp-content/uploads/2011/07/Recent_high_court-judgement.pdf

In particular, for new claimants the State pension (transition)  will be discontinued with effect from 1st January, 2014.  As a result there will be a standard State pension age of 66 years for everyone from 1st January, 2014.

The Social Welfare and Pensions Act, 2011 also provides for an increase in the age for qualification for the State pension from 66 years to 67 years from 2021 and a further increase to 68 years from 2028.

In August 2010 DePuy announced a recall of the ASR hip replacement systems. This arose as a result of a variety of complications arising with the units post hip replacement.

It is our view and recommendation that prior to or indeed following such recall (and further surgery where recommended) patients should as soon as possible seek and obtain full legal counsel and advice prior to negotiating or accepting any expense or cost re-imbursement from DePuy.

Our dedicated  and experienced team will provide the necessary advice and counsel in regard to what steps should be taken by such patients to enforce and protect their legal rights.

Basil was instrumental in bringing the firm to where it stands today, as one of Cork premier legal practices. Through his years in practice he continuously raised the bar both in our firm and within the profession at large.

His service and input will be greatly missed by all at Timothy J. Hegartys, however his influence will continue to show in how the firm progresses.

NEW RATES

A new lower rate of 1% will apply to instruments where the consideration attributable to residential property does not exceed €1,000,000. A higher rate of 2% will apply to the excess of the consideration over €1,000,000

RELIEFS ABOLISHED

Many of the previous Stamp Duty reliefs have been abolished, including:

• Section 83A of the Stamp Duties Consolidation Act 1999 – this exemption applied where a site was transferred by a parent to a child for the purpose of building a house for occupation by the child.
• Section 91A of the Stamp Duties Consolidation Act 1999 – this exemption applied to the purchase by an owner-occupier of a new house or apartment where the floor area did not exceed 125 square metres.
• Section 92 of the Stamp Duties Consolidation Act 1999 – this relief applied to the purchase by an owner-occupier of a new house or apartment where the floor area exceeded 125 square metres.
• Section 92B of the Stamp Duties Consolidation Act 1999 – this exemption applied to a first time purchaser who acquired a house or apartment for owner-occupancy.
• Consanguinity Relief provided for under Schedule 1 of the Stamp Duties Consolidation Act 1999 – this relief will no longer apply to residential property but will continue to apply to non-residential property

All of these changes will apply to instruments executed on or after the 8th of December 2011. 

The Act enables Irish businesses to obtain an arbitration award/judgment that can be easily enforced against a company in another country (provided that country has either adopted the Model Law or has ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards). If the country in which you are seeking to enforce the award/judgement meets this criteria then it only has very limited grounds for refusing to recognise and enforce a foreign arbitration award.

It was clear from this consultation process that there was an overwhelming support for the prohibition of such Commercial Undertakings. Accordingly, the Council of the Law Society has passed a regulation abolishing Commercial Undertakins from the 1st of December 2010.

To review the Regulation, please see the following link:

http://www.lawsociety.ie/Global/eNewsletters/ebulletin/SI366_2010.pdf

Rule 1 of Order 63(A) sets out the categories of case which may be admitted to the Commercial Court list, which envisage most standard commercial disputes. However, admission into the commercial list is at the discretion of the Judge of the Commercial Court even if the case could fall into one of the categories contained within Rule 1 of Order 63(A).

The Commercial Court has earned a reputation for a practical and no nonsense approach to commercial litigation, with it primary aim being to reduce the time of the litigation process for Commercial Plaintiffs. The Commercial Court has therefore become a the favoured forum for those seeking a swift resolution.

In recent years there has been a significant increase in the number of cases being transferred into the Commercial List, particularly in respect of loan defaults and personal guarantees being enforced against property developers. Needless to say, many such claims have been high profile matters involving some of the countries best know developers and business figures.