Calls for tax waiver for above shop properties

James Cox

Hardware Association Ireland has unveiled the findings of its recent ‘Above The Shop’ report to highlight a recommendation to Government for the introduction of a waiver on capital gains tax (CGT) for over the shop properties.

This is the latest initiative undertaken by the Hardware Association following its vacant homes recommendations to Government.

An overwhelming 93 per cent of the parties canvassed, called for a tax waiver to be introduced as an immediate incentive to encourage rapid property sales for this level of investment.

The respondents of the survey believe such a move on CGT would see an increase in turnover and increase rejuvenation of the large numbers of vacant properties that are in Ireland’s towns and villages.

According to the findings of the study, the introduction of these incentives will allow vacant over the shop properties to be quickly sold on to people wishing to buy and rejuvenate them into a home.

Commenting on this, chief executive of Hardware Association Ireland Martin Markey said: “Since Covid-19, we have witnessed a hollowing out of retailers in many of Irelands towns and villages. Sadly a typical main street in Ireland has plenty retail space available along with the units above them ready for conversion and for families to move in."

He added: “If you look at any town street scape you will see plenty of vacant units ready for redevelopment. Our study has shown that there are at least 20,000 units ready for transformation."

The prime recommendation from this survey is a waiver on capital fains Tax, "which needs a window of three years to see a benefit".

Added incentives for the owners of these above the shop properties should be rapidly investigated, the report said. These incentives include:

Other findings from the study reveal the creation of greater incentives for tradespeople and rapid investment initiatives for training programmes to alleviate workforce shortages and more access to affordable finance such as low interest loans or government backed financing options.

Commenting on this, Mr Markey said that, “revitalising vacant ‘Above The Shop’ properties is a vital step toward breathing new life into our towns and villages across the country. By introducing targeted tax incentives and streamlining regulations, we can unlock the potential of these spaces, creating much needed homes and boosting local economies”.

Over 200 parties were canvased including existing members of the HAI and local auctioneers for this report. Hardware Association Ireland is the representative body for Irish hardware and DIY retailers, builders’ merchants, distributers, and manufacturers. It represents over 400 members nationwide and 26,000 staff in the sector.