Budget 2017

BUSINESS TAX CORPORATION TAX RATE The Minister reiterated in his Budget speech that the 12.5% Corporation Tax rate will remain in place indefinitely. CAPITAL ALLOWANCES The deduction for capital allowances for intangible assets, and any related interest expense, will be limited to 80% of the relevant income arising from the intangible asset in an accounting period. The scheme of accelerated capital allowances for energy efficient equipment is being extended to 31 December 2020. VAT The 9% VAT rate on tourism and services sector is retained. An increase in the VAT rate on sunbed services from 13.5% […]

Cash Withdrawals to be Taxed! What does it actually mean?

As announced in the Budget, changes were made by the Finance Act 2015 to levy stamp duty on withdrawals of cash from automated cash machines. This was to replace the flat rate charge on debit and cash cards and comes into effect from January 1st. The news generated some media attention at the time and in December 2015 even the European Central Bank (ECB) was drawn into offering an official opinion. The ECB, which was not consulted about the measure, takes the view that all forms of payment are equal. So it considers that legislation should […]

Budget 2016

Budget 2016 is aimed at improving the tax position for workers and in particular the lower to middle income earners.  This is the second stage of a three year plan to reduce the income tax burden. Key measures include: USC rates reduction CAT threshold increase CGT reduction The budget should encourage consumer confidence and benefit domestically focused businesses. However the marginal rate of income tax for high earning employees still remains comparatively uncompetitive by international standards and does cause concern in attracting foreign employees to Ireland. Income Tax A new Earned Income Tax Credit of €550 […]

Budget 2015

This is the first budget since the start of the recession in 2008 that gives rather than takes, except for the hard hit self-employed! The following shows some of the main changes.   Income Tax 1% reduction in the 41% rate of income tax to 40%. Standard Rate Band increased by €1,000 for single taxpayer and €2,000 for a married couple with two incomes. Rent A Room Relief scheme increases from €10,000 to €12,000 from 1 January 2015. The threshold for the Artists’ Exemption will be increased by €10,000 to €50,000. The Seed Capital Scheme is […]

Budget 2014 – Changes to Tax Relief on Health Insurance Premiums

Budget 2014 announced changes to the amount of tax relief at source which applies to health insurance policies. With effect from 16th October 2013, all new health insurance policies and renewals will have a maximum of 20% tax relief per adult applied to gross premiums up to €1,000. This means the maximum tax relief will be €200. For children*, the gross premium is capped at €500. This means the maximum tax relief will be €100. This replaces the former tax relief at source of 20% of the total gross premium, where there was no capping on the […]

Budget 2014

Income Tax With effect from 1 January 2014 the One Family Parent Tax Credit will be replaced by the Single Person Child Carer Credit. This credit will only be available to the principal carer. Tax Relief at Source (TRS) for medical insurance relief will be restricted to the first €1,000 per adult and the first €500 per child insured. Top slicing relief will no longer be available for ex-gratia payments from 1 January 2014. DIRT rate will increase from 33% to 41% from 1 January 2014. Tax relief for interest on a loan to acquire an […]