A GLIMMER of good news appeared on the horizon this week for hard-pressed builders. A new accounting standard comes into effect this month which will allow them delay the payment of tax on profits made on partially built homes.

The old standard required builders to pay tax on property they hadn’t sold, explains Aidan Clifford, Advisory Services Manager, ACCA Ireland.

Now builders can defer recognition of any profit until the house is completed and sold, meaning payment of tax postponed and money in the bank account for longer. Good news indeed.

It is hard to know who will really benefit from this new standard, says Clifford.

In reality, this new standard will only apply to builders who lucky enough to be making profits at the moment.

Builders who bought sites at the peak, built at the peak and are now sitting on properties that have lost value will not reap any benefits.

Most likely those to do best out of it are smaller builders who purchased sites five to 10 years ago. Good luck to them.